Tata Steel to invest £1.25 billion in new Port Talbot furnace plant

26 Apr 2024 , 06:16 PM

In partnership with the UK government, Tata Steel has reiterated that it will move forward with its £1.25 Billion investment to construct a cutting-edge Electric Arc Furnace for steel production in Port Talbot.

"Following its 19 January 2024 proposal to restructure the UK business and 7 months of formal and informal discussions with the UK Steel Committee (the multi-union forum) and its advisers, Tata Steel has today announced its decision, paving the way for major transformation of Britain’s largest steel plant at Port Talbot, in south Wales," according to a press release issued on Thursday.

Tata Steel CEO T V Narendran referred to this as the "most viable" option, stating that the company's approach, in contrast to the unions' "unaffordable plan," assures a long-term future for the business and protects the majority of jobs in the UK.

"We will continue to work with the trade unions over the following 2 weeks to agree a memorandum of understanding on the future of the UK business and the impact on our people," he stated.

According to the existing permit deadlines, Tata Steel anticipates ordering equipment for the electric arc furnace by September 2024 and beginning work on the project by August 2025.

Additionally, National Grid, the UK's electricity infrastructure supplier, updated and improved its connection offer, which Tata Steel UK accepted.

The company has also stated that it will complete the required paperwork in the next days in order to guarantee that it will have the power infrastructure ready to commission the electric arc furnace by the end of 2027.

Additionally, Tata Steel has stated that the Continuous Annealing Processing Line will close in March 2025 and that the remaining heavy end assets will wind down following the closure of Blast Furnace No. 4.

Additionally, Tata Steel UK will give an extra helping hand to almost 2,800 affected workers.

Assisting people with job searches, providing facilities for training and upskilling activities, and financing small and medium-sized enterprises through the UK Steel Enterprise job creation and regeneration plan are all examples of this.

In addition, the business has given the Transition Board a one-time commitment of £20 Million (of the total £100 Million).

For feedback and suggestions, write to us at [e-mail]