The project, funded by a GBP 500 million grant from the UK government, is of great importance not only to the steel industry but also to the economy and jobs in the region.
The start of the project was celebrated with a groundbreaking ceremony attended by Jonathan Reynolds, Secretary of State for Business and Trade, Natarajan Chandrasekaran, Chairman of Tata Group, Jo Stevens, Secretary of State for Wales, and other senior government and corporate representatives. Following the ceremony, the first steps of construction were taken.
Shadow Minister for Industry and Decarbonisation Sarah Jones also chaired the Steel Council in Cardiff and met with steel industry representatives. The meeting discussed the details of the new Steel Strategy, which will be supported by up to GBP 2.5 billion of investment. The strategy includes a range of measures including lowering energy costs, increasing safeguards against imported steel and encouraging the use of domestic steel in public projects.
The new EAF plant is expected to replace the existing blast furnaces in Port Talbot and reduce carbon emissions from steel production by around 90%. The plant is expected to be fully operational in 2027. The construction process is expected to create 5,000 direct and indirect jobs.
In a statement, Secretary of State for Business and Trade Reynolds noted:
"This is our Industrial Strategy in action. This project is not only important for local communities, but also for the UK steel industry's transition to a greener and more competitive future. By reducing the energy costs of companies like Tata Steel, we aim to improve competitiveness and support the sustainability of the industry."
Speaking at the ceremony, Natarajan Chandrasekaran, Chairman of Tata Group, stated that the transformation at Port Talbot represents not only a new technological investment, but also a milestone for sustainable industrial production in Britain.
"Today's groundbreaking is not just the start of a new Electric Arc Furnace, but the start of an era of cleaner, greener industry in the UK. We are supporting jobs, driving innovation and demonstrating our responsible leadership. This project is also part of the Tata Group's wider investment in the UK, particularly in steel, automotive and technology, and reflects our deep and enduring partnership with this country." He stated.
Secretary of State for Wales Jo Stevens emphasized the government's clear commitment to maintaining steel production in Port Talbot.
"The UK Government has provided Tata Steel with GBP 500 million of investment support. Alongside this, an additional GBP 80 million has been made available to support employees and the community. Port Talbot's future is bright; these investments, supported by offshore wind projects, Celtic Freeport plans and local development initiatives, are strengthening the town's potential as a green industrial hub.”
In addition, thanks to the UK's trade negotiations with the US, 25% tariffs on steel and aluminum are in the process of being lifted. The UK remains the only country in the world to make progress on this issue.
At the end of the ceremony, Secretary Reynolds toured the new EAF site and viewed a simulation of the future plant through virtual reality goggles. Once completed, the plant will produce millions of tons of low carbon steel a year, meeting the country's steel needs and contributing to climate targets.
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