Port Talbot’s Future: Tata Steel Breaks Ground on Electric Arc Furnace in £1.25B Overhaul

Mumbai, July 14, 2025 – Tata Steel Limited (NSE: TATASTEEL, BSE: 500470) announced the commencement of construction for its new state-of-the-art EAF (Electric Arc Furnace) at its Port Talbot facility in the United Kingdom. Once operational,  Port Talbot’s emissions are expected to drop by about 90%, and the project will reduce the UK’s entire industrial carbon output by around 7-8%, making the facility a critical step in the company’s (and the country’s) decarbonisation drive.

This new facility is also expected to drive employment, as at least 5000 new positions will be created.

Tata Steel Share Performance

Tata Steel’s share (NSE) started in green during the early trading hours on Monday. At 10:00 AM, the stock traded at ₹160.10 (0.16% higher than the previous close). The share had a high of ₹160.70 and a low of ₹159.84 during the early trading hours.

Groundbreaking Ceremony Ushers in New Era of Green Steelmaking

Tata Group Chairman N. Chandrasekaran, along with Tata Steel CEO & MD T.V. Narendran and Tata Steel UK CEO Rajesh Nair, officiated the groundbreaking event, held in the presence of UK Government officials. The EAF forms the cornerstone of Tata Steel UK’s £1.25 billion green transformation plan, including a £500 million contribution from the UK Government.

The project is set to dramatically lower carbon emissions at Port Talbot by nearly 90%, or 5 million tonnes of CO₂ per year, and secure the long-term viability of 5,000 direct jobs in the UK steel industry.

Key Project Highlights

Particulars	Details
Total Investment	£1.25 billion
UK Government Support	£500 million
Expected Commissioning	End of 2027
Annual Steel Capacity (EAF)	3 million tonnes
Carbon Emissions Reduction	~90% (~5 million tonnes CO₂/year)
Job Impact	Secures 5,000 UK-based steel jobs
Technology Partners	Tenova, ABB, Clecim
EPC & Supply Chain	Sir Robert McAlpine, Darlow Lloyd & Sons, Mii, Andrew Scott Ltd, others

Leadership Commentary

N. Chandrasekaran, Chairman, Tata Group:

“At Port Talbot, we are building the foundations of a cleaner, greener future. This project reflects Tata Group’s deep and enduring partnership with the UK, spanning steel, automotive, and technology sectors”.

Jonathan Reynolds, UK Business Secretary:

“This is our Industrial Strategy in action. We are backing Welsh steelmaking with certainty for local jobs and communities.”

Jo Stevens, Secretary of State for Wales:

“This £500 million support ensures Port Talbot’s future as a steel hub for generations, alongside £80 million earmarked for community and workforce support.”

First Minister Eluned Morgan also underscored the project’s regional employment benefit, emphasising Tata’s commitment to hiring local contractors and workers.

Strategic Outlook

The Port Talbot EAF, one of the largest globally, will melt UK-sourced scrap and includes upgrades to metallurgy infrastructure and decarbonisation processes. It aligns with Tata Steel UK’s commitment to achieve net-zero steel by 2045 and cut 30% CO₂ emissions by 2030. During the transition, Tata will import slab and hot rolled coil to maintain supply continuity across the UK and EU markets.

Company Overview

Tata Steel Group, with an annual crude steel capacity of 35 million tonnes, is among the world’s top global and geographically diversified steel producers. The company reported a consolidated turnover of US$26 billion for FY25 and has been consistently recognised for sustainability, innovation, and diversity leadership initiatives across global steel operations.

REF: https://nsearchives.nseindia.com/corporate/SAKSHIKAPUR_14072025090058_BSENSE_Signed_July14.pdf

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