Tata Steel UK has officially launched construction of a landmark Electric Arc Furnace (EAF) in Port Talbot, Wales, marking a major step toward sustainable steelmaking.
In a special groundbreaking event, Tata Group Chairman Natarajan Chandrasekaran joined UK government ministers and senior company leaders to kick off the project. Tata Steel CEO & MD T.V. Narendran and Tata Steel UK CEO Rajesh Nair also took part in the ceremony, symbolizing the start of a £1.25 billion green transformation, with £500 million in support from the UK Government.
Once completed by the end of 2027, the new electric furnace will be one of the largest in the world. It’s expected to cut carbon emissions from the Port Talbot site by around 90%—roughly 5 million tonnes of CO₂ each year—while ensuring the production of high-quality, sustainable steel and supporting around 5,000 jobs in the UK.
Speaking ahead of the ceremony, Mr Chandrasekaran said: “This is an important day for Tata Group, Tata Steel and for the UK. 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. This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
The EAF will melt scrap steel sourced within the UK to produce up to 3 million tonnes of steel annually. The wider project also includes advanced metallurgy facilities, upgraded infrastructure, and key collaborations with global tech leaders like Tenova, ABB, and Clecim.
Construction will be led by Sir Robert McAlpine and supported by a number of regional suppliers, including Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd, and Systems Group.
This milestone reinforces Tata Steel’s commitment to decarbonisation, industrial growth, and placing Wales at the forefront of green steel innovation.
