Tata Steel UK’s proposal to build a £1.25 billion electric arc furnace steelmaking facility at Port Talbot in South Wales received approval from Neath Port Talbot Council’s Planning Committee on Tuesday.
In a statement, Rajesh Nair, chief executive officer of Tata Steel UK, said, “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. Amidst a challenging global market, this is a significant milestone for the project, and we are committed to beginning large-scale work on-site this summer, ahead of the electric arc furnace starting up from the end of 2027.”
This £1.25 billion investment is the most significant made in the UK steel industry in decades, he added. “The facility will secure high-quality steel production, preserve thousands of jobs, and safeguard steelmaking in Port Talbot for generations to come.”
The £1.25 billion investment is supported by £500 million of UK government funding. The investment will preserve 5,000 Tata Steel UK jobs and cut on-site carbon dioxide emissions by 90 per cent compared to previous blast furnace-based steelmaking – equivalent to 1.5 per cent of the UK’s total direct carbon dioxide emissions, the company said.
Tata Steel had indicated last year that the transition from blast furnace steelmaking to an electric arc furnace could potentially impact 2,800 jobs.
Business and Trade Secretary Jonathan Reynolds said, “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week.”
“Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change,” he added.
