Tata Steel UK breaks ground on a USD 1.6 billion Electric Arc Furnace (EAF) in Port Talbot, marking a major decarbonisation milestone. Supported by USD 640 million from the UK Government, the project aims to cut carbon emissions at the site by 90%, or 5 million tonnes of CO₂ annually, while securing the production of 3 million tonnes of sustainable steel.
Jul 14, 2025
Tata Steel UK marked a transformative step in its green transition with the groundbreaking of a state-of-the-art Electric Arc Furnace (EAF) at its Port Talbot facility. The ceremony was led by Tata Group Chairman N. Chandrasekaran, joined by Tata Steel CEO T. V. Narendran, Tata Steel UK CEO Rajesh Nair, and government officials.
The USD 1.6 billion investment, supported by USD 640 million from the UK Government, aims to cut carbon emissions at the site by 90%, or 5 million tonnes of CO₂ annually, while securing the production of 3 million tonnes of sustainable steel.
“This is an important day for Tata Group, Tata Steel and for the UK,” said Mr. Chandrasekaran. “Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.”
Business Secretary Jonathan Reynolds added, “This is our industrial strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.”
Secretary of State for Wales Jo Stevens also said, “The UK government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with USD 640 million to secure its future in the town.”
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The new EAF, one of the largest globally, will recycle UK-sourced scrap steel. The project also features new ladle metallurgy facilities, infrastructure upgrades, and collaborations with Tenova, ABB, and Clecim to drive advanced, low-carbon steel production.
