#electricArcFurnace

Tata Steel begins new project at Port Talbot in £1.25bn green plan

The company says the state‑of‑the‑art facility will replace ageing equipment and prepare hot rolled steel for downstream processes. The line cleans and treats steel before it is cold rolled and coated, supplying other Tata operations at Trostre, Llanwern and Shotton.

A turning point for Tata’s operations

Mills Programme Manager Andrew McGregor called the groundbreaking a turning point.

“This is a fundamental asset that is required for us to have a sustainable UK business going forward,” he said.

“Our current assets are at the end of their operational life, and without this replacement pickle line, we wouldn’t be able to process many of the steels required for our downstream businesses and directly for our customers.”

McGregor also praised the project team for months of preparatory work, from diverting cables to clearing the bay, which has allowed demolition crews to move in.

Tata Steel executives, including Pramod Agrawal and Rajesh Nair, inspect the cleared bay inside Port Talbot steelworks where the new pickle line will be built.(Image: Tata Steel)

One year after the blast furnaces fell silent

The investment comes less than a year after the closure of Port Talbot’s blast furnaces, which brought significant job losses and uncertainty for the town. Tata insists the pickle line is a sign of renewal, but unions and community leaders have warned that the transition to electric arc furnace production will still mean a smaller workforce.

The new pickle line is scheduled to be in place by 2026, ahead of the planned commissioning of a 3.2 million‑tonne electric arc furnace in 2027/28. Tata says the EAF will melt UK‑sourced scrap steel and form the centrepiece of its decarbonisation strategy.

Project leaders and contractors gather in hi‑vis at Port Talbot steelworks as demolition begins for the new pickle line, alongside heavy machinery on site.(Image: Tata Steel)

Local firms in the frame

Construction of the pickle line is being led by Sir Robert McAlpine, with regional firms including Darlow Lloyd & Sons, Andrew Scott Ltd and Systems Group also involved.

At the official ceremony, Tata Steel board member Pramod Agrawal cut the ribbon alongside senior executives.

Pramod Agrawal, Tata Steel board member, during his visit to Port Talbot to mark the start of the new pickle line project.(Image: Tata Steel)

Optimism tempered by caution

For Port Talbot, the start of work on the pickle line is another reminder of the site’s changing role. Neath Port Talbot Council leader Steve Hunt recently described the past year as “seismic” for the town, but said projects such as the pickle line and the Celtic Freeport offered reasons for optimism.

Campaigners, however, remain cautious. They argue that while new investment is welcome, the loss of traditional steelmaking has left deep scars and that promises of a “green future” must be matched by secure jobs and long‑term commitments.

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#AndrewScottLtd #blastFurnace #DarlowLloydSons #electricArcFurnace #GreenSteelmaking #industry #manufacturing #PickleLine #PortTalbot #PortTalbotSteelworks #PramodAgrawal #SirRobertMcAlpine #SystemsGroup #TataSteel

Pramod Agrawal with Tata Steel UK leaders at Port Talbot steelworks, cutting the ribbon to launch construction of the new pickle line.Tata Steel leaders stand inside Port Talbot steelworks, viewing the large empty space prepared for the new pickle line project.Large group of Tata Steel executives and contractors in yellow hi‑vis at Port Talbot steelworks, standing by construction equipment during the pickle line groundbreaking.Close‑up of Tata Steel board member Pramod Agrawal at Port Talbot steelworks.

Powering change: National Grid sets out plans to electrify green steel in Port Talbot

National Grid has announced plans for a major electricity infrastructure upgrade in Port Talbot to power Tata Steel’s new electric arc furnace (EAF) and strengthen energy capacity across South Wales.

The Margam Connection Project includes the expansion of the existing Margam substation with a new 275kV gas-insulated substation (GIS), and a second GIS facility at the Tata Steel site connected via underground cable. Both sites will be built using SF6-free switchgear technology, reducing the project’s environmental footprint.

A public information event will take place on Thursday 17 July, from 2pm to 8pm, at Margam Community Centre, Bertha Road, Port Talbot, ahead of a 28-day statutory pre-application consultation.

Richard Gott, project director at National Grid Electricity Transmission, said the upgrade will help deliver a cleaner, more secure energy future for South Wales. “By enabling the electrification of Tata Steel’s operations, we’re not only supporting the UK’s transition to green steel but also helping to safeguard jobs and strengthen the local economy,” he said. “We look forward to engaging with the community and hearing their views.”

Construction will be delivered in partnership with Laing O’Rourke, using pioneering technology that replaces sulphur hexafluoride (SF6)—a commonly used but potent greenhouse gas—with lower-impact alternatives.

Peter Lyons, managing director for Laing O’Rourke’s Europe hub, said the firm was proud to continue its partnership with National Grid. “This project is another fantastic example of how we’re helping to deliver cleaner and more secure energy for the UK,” he said. “Through early collaboration, we’ve worked together on the design and implementation programme, and National Grid has valued both our unique operating model and our technical expertise.”

National Grid is planning £35 billion of transmission network investment across Wales and England between 2026 and 2031 to connect clean power sources, electrify industry, and support national economic growth.

Related stories from Swansea Bay News

Tata Steel breaks ground on new electric arc furnace in Port Talbot
Construction begins on low-carbon steelmaking facility set to transform the future of Welsh steel.

Port Talbot steelworkers to be offered redundancy packages as part of green transition
Tata Steel outlines support measures for workers affected by shift to electric arc furnace technology.

First Minister visits Port Talbot to meet steelworkers and discuss green jobs
Welsh Government pledges support for workforce and future investment in sustainable industry.

Steel unions call for alternative plan to save jobs at Port Talbot
Union leaders urge Tata Steel to reconsider proposals and protect long-term employment in the region.

#electricArcFurnace #electricitySubStation #greenSteel #LaingORourke #Margam #NationalGrid #PortTalbot #PortTalbotSteelworks #powerLines #TataSteel

The proposed Margam Connection Project will see the expansion of the existing Margam site with a new 275kV gas-insulated substation (GIS)

Work begins on Port Talbot electric arc furnace as steelworks transition moves forward

Construction has begun on Tata Steel’s £1.25bn electric arc furnace (EAF) in Port Talbot, marking a major milestone in Wales’ industrial transformation—but it comes with the loss of more than 2,800 jobs and the end of traditional steelmaking in the town.

Business Secretary Jonathan Reynolds, Welsh Secretary Jo Stevens, and Tata Group Chairman Natarajan Chandrasekaran formally broke ground at the steelworks site on Monday (14 July), signalling the start of a project designed to cut carbon emissions by 90% and shift production toward recycled scrap steel.

The UK Government has committed £500 million toward the EAF, describing it as “a major win” for Welsh steelmaking that secures 5,000 jobs nationwide. The new furnace will replace the site’s two blast furnaces—shut down in September 2024—ending a century of primary steelmaking in Wales.

‘Bitter sweet’ day for steelworkers and families

The announcement has been widely described as bittersweet. While Tata and ministers hailed the start of a cleaner, greener future, union representatives and local leaders stressed the impact of the redundancies and the uncertainty still facing thousands of workers.

Assistant General Secretary Alasdair McDiarmid of Community Union said:

“This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured.

The workforce needs the electric arc furnace project to be both a success and a turning point… Going forward we must see further investment to develop and grow the business, both here in Port Talbot and across all the crucial downstream sites.”

Speaking ahead of the groundbreaking, First Minister Eluned Morgan said the construction phase represents “a tangible sign” of Tata’s commitment, adding that the Welsh Government is working with partners to support affected workers and promote economic resilience.

Former steelworker Graham Rowland said:

“I’ve seen good boys lose their jobs… This industry kept this town alive. It’s the heart and soul of the place. If anywhere can make that arc work, it’s Port Talbot. The knowledge, the grit, the people—it’s all here. We just need the right support.”

Related stories from Swansea Bay News

Job losses confirmed as Tata Steel sets timetable for blast furnace closures
Explores the closure of Port Talbot’s heavy-end and its impact on workers.

Port Talbot regeneration fund launched to support steelworker transition
Details funding pledged to support displaced workers and local communities.

Celtic Freeport: what it means for the local economy and green infrastructure
Examines future investment opportunities connected to Port Talbot’s green transition.

EAF: cleaner steel, fewer emissions—but far fewer jobs

Tata Steel says the new furnace is essential to achieving climate targets and creating “a financially and environmentally sustainable future.” The company has reported losses of £4bn in Port Talbot since 2007.

Chairman Natarajan Chandrasekaran said:

“This is a proud day for the Tata Group, Tata Steel and for the UK. 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.”

The new furnace will be built on the site of the Basic Oxygen Steelmaking (BOS) plant and is set to be one of the largest of its kind globally, capable of producing up to three million tonnes of steel per year. Contractor Sir Robert McAlpine has been appointed to deliver the build, which will also include a new scrap processing plant.

Operations are expected to begin in late 2027. In the meantime, Port Talbot will continue to roll imported steel slabs through its hot strip mill and finishing lines.

Supporting workers through the transition

Neath Port Talbot Council and the Tata Steel / Port Talbot Transition Board have pledged over £100 million to support workers, businesses and community recovery. This includes:

  • A £19.8 million Employment and Skills Fund
  • A £21.2 million investment in Harbourside manufacturing and skills facilities
  • A £13 million business start-up and resilience programme
  • Additional community grants targeting financial hardship, mental health and career retraining

A recent survey by Public Health Wales found that 74% of local households expect to face financial pressure in the coming months, with food, energy, and housing cited as key concerns.

Council Leader Cllr Steve Hunt said:

“On behalf of the Transition Board, Neath Port Talbot Council is delivering targeted support to people and businesses both within Neath Port Talbot and further afield.”

Looking ahead

While the shift to EAF production represents a landmark shift in Welsh industry, many argue the transformation must be judged not just by its carbon savings, but by the long-term outcomes for workers, communities and supply chains.

Luke Fletcher MS, Economy spokesperson for Plaid Cymru and Senedd Member for South Wales West, said the start of construction is “welcome,” but warned that “the opportunity has been lost to safeguard over 2,000 primary steelmaking jobs.”

“Labour has promised a lot to the communities in and around Port Talbot,” he said, “it’s vital that those promises are realised now.”

Swansea Bay News will continue to follow developments across Port Talbot and the steel sector as this historic transition unfolds.

#CllrSteveHunt #CommunityUnion #electricArcFurnace #ElunedMorganMS #featured #LukeFletcherMS #NatarajanChandrasekaran #PortTalbot #PortTalbotSteelworks #steelworks #TataSteel

Tata Steelworks in Port Talbot
Yonhap Infomax Newsinfomaxkorea
2025-03-26

Hyundai Steel explores funding options for $6.5 billion US steel mill investment, considering green finance and DOE loans while ruling out rights issue

en.infomaxai.com/news/articleV

Yonhap Infomax Newsinfomaxkorea
2025-03-26

Hyundai Steel's $5.8 billion investment in U.S. electric arc furnace steel mill receives positive market reaction, despite concerns over potential rights issue and profitability challenges

en.infomaxai.com/news/articleV

SPECIFIC IKCinfo_specific
2023-12-04

that an can use up to 100% scrap steel as its raw material? 🏗♻ Traditional using a blast furnace emits around 2.32 tonnes of CO2 per tonne of steel produced. Switching to an electric arc furnace could reduce that number to 0.67 tonnes of CO2 per tonne of steel.

A great article by Dr Rebecca Waldram summarises what you need to know about electric arc furnaces and why the UK needs to its steel industry.

👉theconversation.com/electric-a

A group of workers operating an electric arc furnace inside a steelworks. The furnace is glowing very brightly.

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