Neath Port Talbot Council’s Planning Committee approved Indian steel major Tata Steel UK’s proposals to deliver state-of-the-art Electric Arc Furnace steelmaking in Port Talbot, South Wales, this week.
UK Business and Trade Secretary Jonathan Reynolds said: “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week.
“Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change.”
The planning application sought permission to construct an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking, and supporting infrastructure.
Rajesh Nair, CEO of Tata Steel UK, said: “Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027.
“This £1.25-billion investment is the most significant investment made in the UK steel industry in decades. The facility will secure high-quality steel production, preserve thousands of jobs and safeguard steel making in Port Talbot for generations to come.”
Supported by £500 million of UK government funding, the investment will preserve 5,000 Tata Steel UK jobs and cut on-site CO2 emissions by 90 per cent compared to previous blast furnace-based steelmaking – equivalent to 1.5 per cent of the UK’s total direct CO2 emissions.
An Electric Arc Furnace uses electricity to melt predominantly scrap steel – of which there is an abundance in the UK – rather than requiring imported iron ore and coal. The site’s ageing iron and steelmaking assets, which included the harbour, coke ovens, sinter plant and blast furnaces, were closed last year.
MORE LIKE THIS…
This is the latest major milestone Tata Steel has passed on its transition to green steelmaking. Last year, Tata Steel appointed the world-leading metals technology manufacturer Tenova to supply the new furnace. It comes ahead of Reynolds’ planned visit to India to relaunch the Free Trade Agreement (FTA) talks.
*Info: Plan for Steel
