Port Talbot kicks off green steel project as 5,000 jobs secured

On 14 July, Business Secretary Jonathan Reynolds joined Tata Group Chairman N. Chandrasekaran, Wales Secretary Jo Stevens, and other government and company representatives to break ground on the project and start construction.

The construction milestone, made possible by a £500 million UK Government grant provided as part of the improved deal for Port Talbot’s transition, which the Government agreed after only 10 weeks in office, is a major win for Welsh steelmaking in the run-up to the launch of the Government’s Steel Strategy this year.

On the morning of 14 July, Industry Minister Sarah Jones chaired
a meeting of the Steel Council at 7Steel in Cardiff to work towards finalising the upcoming Steel Strategy – backed by up to £2.5 billion of investment – and reflect on a series of recent wins for the industry with senior leaders from across the sector, including British Steel and UK Steel.

This included slashing energy costs for steel producers via new measures announced in the UK’s modern Industrial Strategy.

Also on the agenda was strengthening the UK’s steel safeguard measures to protect the industry from spikes of foreign steel imports and bolstering the UK’s procurement rules
to ensure UK-made steel is considered wherever possible for use on public construction projects.

Tata Group Chairman Mr Chandrasekaran said: “This is a proud day for Tata Group, Tata Steel and for the UK.

“Today’s groundbreaking [announcement] 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.”

The Government also hopes to support the steel sector by working closely with the US to secure the removal of 25 percent tariffs on steel and aluminium, while the UK currently remains the only country in the world not to pay a 50 percent tariff rate.

The start of construction on Tata Steel’s EAF marks a significant step forward in Port Talbot’s transition to greener steel production, and is expected to reduce the site’s carbon emissions by around 90 percent.

Secretary of State
for Wales Jo Stevens said: “The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community.

“Our Steel Strategy will also deliver up to £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.

“The construction of Tata’ 's new furnace realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport, and millions more for local regeneration all mean that Port Talbot has a bright future.”