The new facility, which will use electric arc furnace (EAF) technology, was intended to replace the traditional blast furnaces that were shut down two years ago, resulting in the loss of around 2,000 jobs, and was scheduled to become operational by the end of 2027.
The company is reported to be working with National Grid on electricity network upgrades to support the infrastructure required for the new electric arc furnace.
However, company executives told investors that issues related to the electricity connection could delay the project timeline. Tata Steel UK executive Koushik Chatterjee said that major demolition works had been completed, but access to high-voltage electricity remains critical to the transformation process.
“We are working with the Electricity System Operator and National Grid on the new electrical infrastructure, but National Grid has formally informed us that the grid connection project is delayed. This is critical for Tata Steel UK’s project commissioning process,” Chatterjee said.
Commenting on the potential delay, Chatterjee added: “Once the plant is completed, a delay of approximately six to eight months is certain, and it could even be longer.”
The company stated that discussions are ongoing with the UK government and infrastructure partners to accelerate the process and mitigate the impact. Tata Steel also noted that, as with large-scale projects, timelines may vary depending on engineering, construction and infrastructure work.
National Grid said the work includes the construction of two new substations, the installation of transformers and the laying of approximately two kilometres of underground cable. However, ground conditions, environmental considerations and planning-related issues have contributed to delays, although progress continues.
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