Tata Steel UK has broken ground on construction of its GBP1.25 billion (USD1.62bn) Electric Arc Furnace project at Port Talbot, Wales.
The investment by Tata Steel and the UK Government is expected to reduce the site’s CO2 emissions by 50 million tonnes over the next 10 years, securing 5,000 jobs across UK operations.
Tata closed two of its blast furnaces in South Wales last year in preparation for the introduction of the EAF. The steel producer said the new mill will be better environmentally and will enable canmakers to make products with lower carbon emissions and establish a circular supply chain.
The company hosted a high-profile groundbreaking ceremony to mark “the start of a new era” for Tata Steel UK, along with chairman of holding company Tata Sons, Natarajan Chandrasekaran and Tata Steel chief executive T V Narendran.
Speaking to attendees, Chandrasekaran said he recognised the difficult times the company has been through in recent years.
“This site has gone through a lot of difficulties, and the people here have been through hardship. This is a major commitment we are making and it is a new era. It is important we get this project right. I personally am very committed to making this happen.
“Many people, many naysayers, thought that this day would not come. The Tata Group is super committed to this project – that is why I wanted to be here today as a demonstration of my personal commitment and the group’s commitment.”
UK Secretary of State for Business and Trade Johnny Reynolds added that the investment is a “chance to look to the future with optimism”.
He continued: “In the UK government, we know there are lots of policy changes that need to happen to create the conditions for success.
“But I can tell you, the commitment from the UK government, working hand-in-hand with our Welsh government colleagues, is absolute – and that is why we should be excited and optimistic about what we are seeing here today.
“I want this site at Port Talbot to not just be a story about this steelworks, but a story about how we will tackle industrial transformation across the UK, working with unions, working with the Welsh government, working with the business here to succeed and to deliver.”
Last week, Tata Steel UK unveiled a research initiative aimed at developing a new generation of advanced steel products from its EAF technology, which it claims will transform the future of packaging applications, including food cans.
The project, ADAPT-EAF (Accelerating the Development of Automotive and Packaging steel Technology for Electric Arc Furnace production) is designed to address one of the key challenges of using high-recycled-content steel: how to control and optimise residual elements that affect performance in demanding applications such as some canned foods.
