Tata Steel UK marked a major step forward in its green transition on 14TH July , as Tata Group Chairman N. Chandrasekaran joined UK government ministers to officially break ground on a cutting-edge Electric Arc Furnace (EAF) facility in Port Talbot. This initiative forms part of a wider £1.25 billion decarbonisation plan, backed by £500 million in UK Government support.
Accompanied by Tata Steel CEO & MD T. V. Narendran and Tata Steel UK CEO Rajesh Nair, Mr. Chandrasekaran led the symbolic ceremony that signals the start of construction on what will be the UK’s largest low-carbon steelmaking plant.
Expected to be operational by the end of 2027, the new EAF will cut Port Talbot’s carbon emissions by approximately 90%, or 5 million tonnes of CO₂ annually. The plant will play a crucial role in maintaining high-quality, sustainable steel production in the UK and in directly supporting 5,000 jobs.
Speaking ahead of the event, Mr. Chandrasekaran stated:
“This groundbreaking is more than a construction milestone—it represents a renewed vision for sustainable manufacturing in the UK. Through this Electric Arc Furnace, we are building a cleaner future, supporting jobs, and reaffirming Tata’s long-term commitment to Britain. It also aligns with our wider UK investments across steel, automotive, and technology sectors, reinforcing the deep partnership we share with the country.”
UK Business Secretary Jonathan Reynolds hailed the project as a cornerstone of the government’s Industrial Strategy, stating:
“This is a big win for Welsh steelmaking and the broader UK economy. Our support ensures stability for communities and well-paid jobs across the region.”
Welsh Secretary Jo Stevens highlighted the government’s total commitment of £580 million—including £80 million for workforce and community support, calling the project a fulfilment of their promise to Port Talbot. Additional plans, such as floating offshore wind development and the Celtic Freeport, add to the region’s bright future.
Welsh First Minister Eluned Morgan described the day as momentous for Welsh industry. She praised Tata’s commitment to local jobs, saying the start of construction underscores the company’s promise to maintain steelmaking in Port Talbot for generations.
The facility will be one of the largest EAFs globally, recycling UK-sourced scrap to produce 3 million tonnes of steel annually. It will also include advanced metallurgy, major infrastructure upgrades, and partnerships with Tenova, ABB, and Clecim.
Construction is led by Sir Robert McAlpine, supported by a strong regional supply chain, including Darlow Lloyd & Sons, Skelton Thomas, Wernick Buildings, and others.
This groundbreaking reflects Tata Steel’s enduring commitment to sustainable growth, industrial resilience, and green steel leadership in Wales and the UK.
