Tata Steel UK has celebrated a historic milestone in its green transformation journey as Mr Natarajan Chandrasekaran, Chairman of Tata Steel and the Tata Group, joined government ministers at a groundbreaking event for the company’s state-of-the-art Electric Arc Furnace (EAF) facility in Port Talbot.
Mr Chandrasekaran was joined by Tata Steel CEO and Managing Director T. V. Narendran and Tata Steel UK CEO Rajesh Nair, where they officially broke the ground with spades, marking the official start of construction for the UK’s largest low-carbon steelmaking facility. This is part of a £1.25bn transformation to low CO2 steelmaking, supported by a £500m investment from the UK Government.
The new EAF—set to be commissioned at the end of 2027—is expected to reduce Port Talbot’s carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, while securing high-quality sustainable steel production and supporting 5,000 UK jobs directly.
Speaking ahead of the ceremony, Mr Chandrasekaran said: “This is an important day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership. This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
Business Secretary Jonathan Reynolds said: “This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.
“This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible. Our modern Industrial Strategy will set out how we’ll back the sector even further to drive growth and create well-paid jobs across the country, as part of our Plan for Change.”
The Port Talbot EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce 3 million tonnes of steel per year. As part of Tata Steel UK’s broader decarbonisation strategy, the project also includes new ladle metallurgy facilities, infrastructure upgrades, and partnerships with leading technology providers such as Tenova, ABB, and Clecim.
Construction is being led by main contractor Sir Robert McAlpine, alongside a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.
The groundbreaking reaffirms Tata Steel’s commitment to delivering long-term sustainability, strengthening UK industrial resilience, and ensuring Wales remains at the forefront of green steelmaking.
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