Tata Steel is moving forward with its £1.5 billion electric arc furnace (EAF) project at Port Talbot, aiming to begin operations by 2027. The transition marks a major shift from traditional blast furnace steelmaking to a lowemission, sustainable model, backed by £500 million in UK government funding.
Key Highlights:
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Construction Timeline: Work on the EAF facility is set to begin in July 2025, with full commissioning expected by FY2728.
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Capacity & Emission Reduction: The new plant will produce 3.2 million tonnes of lowemission steel annually, cutting over 50 million tonnes of CO₂ emissions in the next decade.
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End of Blast Furnace Operations: Tata Steel has shut down its upstream operations in the UK, shifting to a downstream model using imported substrate from India and the Netherlands.
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Cost Rationalization: The company aims to reduce fixed costs from £762 million in FY25 to £540 million in the coming year through modernized IT infrastructure and streamlined operations.
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Job Transition Plan: With the closure of blast furnaces, 2,800 jobs will be cut, but 5,000 positions will remain across Tata Steel UK and its supply chain.
This project underscores Tata Steel’s commitment to decarbonization and sustainable steel production, positioning the company as a leader in lowcarbon industrial transformation.
Sources: Moneycontrol, Economic Times, Goodreturns