Tata Steel starts working on electric arc furnace project in the UK

Tata Steel UK has commenced work on setting up an electric arc furnace as part of its green transformation journey at Port Talbot.

Tata Steel Chairman Natarajan Chandrasekaran, along with Managing Director and CEO TV Narendran, Tata Steel UK CEO Rajesh Nair and other government ministers, performed the groundbreaking ceremony to start the construction of the UK’s largest low-carbon steelmaking facility with an investment of £1.25 billion, including a grant of £500 million from the UK government.

The new EAF to be commissioned 2027-end is expected to reduce Port Talbot’s carbon emissions by about 90 per cent while securing high-quality sustainable steel production and supporting 5,000 UK jobs directly.

Chandrasekaran said the project is part of Tata Group’s wider investment in the UK, across steel, automotive and technology among others, which reflects the enduring partnership with this country.

The project is not just the beginning of a new Electric Arc Furnace, but also a new era for sustainable manufacturing in Britain, he said.

At Port Talbot, the company is building the foundations of a cleaner, greener future, supporting jobs, driving innovation and demonstrating commitment to responsible industry leadership, he added.

The new EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce 3 million tonnes of steel per year.

As part of Tata Steel UK’s broader decarbonisation strategy, the project also includes new ladle metallurgy facilities, infrastructure upgrades and partnerships with leading technology providers such as Tenova, ABB and Clecim.

Construction is being led by main contractor Sir Robert McAlpine, along with a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.

Published on July 14, 2025