Port Talbot Breaks Ground On £1.25bn Electric Arc Furnace Project

The redevelopment of Port Talbot’s steelworks entered a new phase today with a groundbreaking ceremony to mark the start of construction on a £1.25 billion electric arc furnace (EAF) — a flagship project in the UK’s transition to low-carbon industrial infrastructure.

Senior UK Government ministers joined Tata Steel and Tata Group leadership on site in South Wales to formally begin work on the EAF, which will replace the site’s blast furnace capability. The move is central to Tata’s decarbonisation programme and the Government’s broader green industrial strategy.

Funded through a £500 million public contribution alongside Tata’s own investment, the new EAF will enable the plant to recycle scrap steel rather than produce virgin steel, reducing Port Talbot’s carbon emissions by an estimated 90%. Commissioning is scheduled for 2027.

Natarajan Chandrasekaran, chairman of Tata Group, called the milestone “an important day for Tata Steel and the UK,” adding: “At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation and demonstrating responsible industrial leadership.”

The project marks one of the largest industrial transformations in recent UK history, but comes with complex workforce implications. The closure of the blast furnaces in September 2024 will result in the loss of around 2,500 jobs. The transition has been met with both hope and concern, with local unions describing the day as “bittersweet.”

Business Secretary Jonathan Reynolds framed the EAF project as a cornerstone of the UK’s industrial policy: “This is our strategy in action — backing Welsh steelmaking and delivering long-term certainty for communities and skilled jobs in South Wales.”

Wales’ First Minister, Eluned Morgan, hailed the project as a “tangible sign” of Tata’s long-term commitment to steel in the region. Meanwhile, Welsh Secretary Jo Stevens pointed to complementary developments — including floating offshore wind infrastructure, the proposed Celtic Freeport, and regeneration funding — as part of a wider economic renewal strategy for the area.

Community, the steelworkers’ union, welcomed the start of construction but emphasised the need for continued investment and dialogue. Assistant general secretary Alasdair McDiarmid said: “This must be a turning point. We need a strong, resilient steel sector underpinned by sustained public-private co-investment. The EAF is just the first step.”

For project managers and infrastructure leaders, the Port Talbot EAF signals the scale of planning, stakeholder coordination and public-private funding required to decarbonise legacy heavy industry — and the trade-offs that accompany major transitions.