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Tata Steel will begin construction of its cutting-edge electric arc furnace (EAF) facility at Port Talbot, Wales, in July 2025, with commercial operations targeted by 2027. The £1.5 billion investment is part of Tata’s broader effort to decarbonize its European operations and future-proof its UK footprint.
The new EAF facility will replace traditional blast furnaces and utilize recycled scrap metal as the primary input. This transition is expected to reduce on-site carbon emissions by up to 90%, aligning with Tata Steel’s climate commitments and broader global sustainability goals. The plant is designed to produce 3.2 million tonnes of low-emission steel annually.
This shift to green steelmaking will also support Tata Steel’s plan to reduce fixed costs in the UK—from £762 million in FY25 to £540 million by FY26—through operational efficiencies, digital modernization, and streamlined logistics.
Tata Steel has already begun shutting down its existing blast furnace operations at Port Talbot. In the interim, domestic steel demand will be met through imports from Tata’s global facilities.
Once operational, the Port Talbot EAF facility will become a cornerstone of the UK’s green industrial transformation. It represents not just a leap in steel technology, but also a critical step in reshaping Europe's steel industry for a lower-carbon future.
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