Tata Steel to Invest £1.25 Billion to Build a State-of-the-Art Electric Arc Furnace in Port Talbot

Specifications:

Name:

Tata Steel to Invest £1.25 Billion to Build a State-of-the-Art Electric Arc Furnace in Port Talbot

Location:

Port Talbot, Wales

Company:

Tata Steel

Estimated Cost:

£1.25 Billion

Source:

https://www.tatasteel.com/

Introduction:

Tata Steel will proceed with its £1.25 Billion investment to build a state-of-the-art Electric Arc Furnace in Port Talbot and commence closure of the existing heavy end assets in the following months.

Features:

The transformation will represent the single largest investment in UK steelmaking in decades, safeguard its long-term future, secure 5,000 jobs directly at Tata Steel, whilst creating more indirect jobs in engineering and construction, and reducing CO2 emissions by 5 million tonnes each year.

Tata Steel has progressed to an advanced stage of engineering and expects to place equipment orders for the electric arc furnace by September 2024 and based on current permitting timelines, begin construction on the project by August 2025. Tata Steel UK has also accepted a revised and updated connection offer from National Grid, the UK’s power infrastructure company, and will be finalising documents in the coming days, ensuring it will have the power infrastructure in place to commission the electric arc furnace on schedule by end-2027.

This transformation will also address the ageing profile of the existing heavy end assets and declining reliability that has resulted in challenging operating conditions, lower volumes, and higher costs of production and maintenance. Tata Steel UK has already had to supplement its own production with imported material of 333,000 tonnes during the last six months, to serve its customers. In the Financial Year 2023-24, Tata Steel UK has recorded a negative EBITDA of £ 373 million and negative free cashflow of £ 623 million.