14-07-2025
Work to begin on £1.25bn electric arc furnace in Port Talbot with first spades in the ground
Tata Steel will mark the start of its move towards greener steel production at Port Talbot' s steelworks on Monday.
The steel giant is progressing with its construction of a £1.25bn electric arc furnace (EAF) in the town, which is set to be up and running by the end of 2027.
Government ministers will join Tata bosses at a groundbreaking event at the Port Talbot site later today (Monday 14th July) to mark the beginning of the furnace's construction.
Natarajan Chandrasekaran, chairman of Tata Steel and the Tata Group, described the moment as an 'important day for Tata Group, Tata Steel and for the UK'.He added: '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.'
The electric arc furnace (EAF) will be built on the site of the Port Talbot steelworks, in the area of the existing Basic Oxygen Steelmaking (BOS) plant.
It is thought that it will be one of the largest furnaces of its kind in the world, melting mostly scrap steel to produce 3 million tonnes of steel per year.
Tata insists the move will cut Port Talbot's emissions by 90%, while ensuring the future of steel production in the town.
It comes after Tata Steel closed the plant's last blast furnace in September last year.
The move put over 2,800 jobs at risk and brought traditional steel-making to an end in the town.
Around 2,500 workers are thought to have left the business by March 2025, with many having already left by the end of last year.A further 300 roles are set to be affected in the next three years.
The UK Government has backed plans for the EAF with a £500 million investment, saying that 5,000 UK jobs have been secured as a result of its of the groundbreaking event, Community Assistant General Secretary Alasdair McDiarmid said: "This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured.
"The workforce needs the Electric Arc Furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running."
A new Public Health Wales survey highlighted that communities in Neath Port Talbot have been rallying round to support each other after the job losses at the steelworks. The survey found that 74% of households are expecting to experience some form of financial pressure in the next six months, specifically with energy bills (56%), food (44%) and housing (26%).
Neath Port Talbot Council Leader Cllr Steve Hunt said the Tata Steel / Port Talbot Transition Board was established in response to the job losses, which has been providing £100 million of funding to support workers, businesses, and affected communities.
He added: "On behalf of the Transition Board, Neath Port Talbot Council is delivering targeted support to people and businesses both within Neath Port Talbot and further afield. For example, the £19.8 million Employment and Skills Fund set up by the Transition Board to help affected individuals secure future employment."Ahead of the groundbreaking ceremony, Business Secretary Jonathan Reynolds said: '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 said that the start of the construction "realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future.'
First Minister Eluned Morgan said, 'Seeing spades in the ground today provides a tangible sign of Tata's intention to continue producing steel in the area, an industry which has provided quality jobs to local people for generations.
'The start of the construction phase is good news for Port Talbot and neighbouring communities, and I'm especially pleased that Tata has committed to employing local contractors and local workers where it can.'Luke Fletcher MS, Plaid Cymru's Economy spokesperson and Member of the Senedd for South Wales West said the news is "welcome", but said" we cannot forget the opportunity that has been lost here to safeguard over 2000 primary steel making jobs for the future. 'Labour has promised a lot to the communities in and around Port Talbot, it's vital that those promises are realised now.'
