Tata Steel announced it will begin construction this month on a major low-emission steelmaking facility at Port Talbot, South Wales. The project, which represents a total investment of approximately £1.5 billion, is a key step in the company’s plan to transition to greener production methods in the UK.
Out of the total investment, £500 million is being supported by the UK government. Tata Steel aims to bring the facility into operation by 2027, according to its FY2024–25 annual report. Construction will center around the installation of an Electric Arc Furnace (EAF) at Port Talbot, which will replace the traditional blast furnace process. This shift will allow Tata Steel to significantly cut carbon emissions by utilizing local scrap steel as a raw material.
“The EAF project is on track, and construction is scheduled to begin this month at Port Talbot,” the company said in a statement. CEO & MD T.V. Narendran and Executive Director & CFO Koushik Chatterjee confirmed that all necessary approvals have been secured for the transformation. “We’re moving toward a modern, low-carbon steelmaking process by FY2027–28, backed by substantial government support,” the leadership noted in the report.
Port Talbot is home to the UK’s largest steelworks, with a capacity of 3 million tonnes per annum. Tata Steel has already ceased upstream operations in the UK and is currently supplying the local market using steel substrates produced in its Indian and Dutch facilities.
In the June quarter, UK deliveries totaled 0.60 million tonnes (MnT), reflecting a decline from 0.68 MnT during the same period last year. Despite this drop in UK deliveries, production levels across key regions remained relatively stable, with India producing 5.26 MnT, the Netherlands 1.70 MnT, and Thailand 0.33 MnT.
Deliveries for Q1 FY26 stood at 4.75 MnT from India, 1.50 MnT from the Netherlands, and 0.34 MnT from Thailand. These figures indicate consistent operational performance in production and distribution across the company’s international footprint.
The company also reported temporary disruptions in India due to maintenance activities. The reline of the G Blast Furnace at Jamshedpur and operational shutdowns at NeelachalIspat Nigam Limited (NINL) led to reduced finished goods output, affecting deliveries. However, operations at NINL have resumed, and the blast furnace reline is expected to conclude by the end of July 2025.
Tata Steel Group is one of the world’s leading steel manufacturers, with an impressive annual production capacity of 34 million tonnes. Its operations extend across multiple continents, cementing its status as a global powerhouse in the steel industry. The company’s expansive reach allows it to cater to diverse markets and establish a robust international presence.
In the United Kingdom, Tata Steel stands as the largest steel producer, boasting a crude steel production capacity of 5 million tonnes annually. Employing over 8,000 people, its operations span Wales, England, Northern Ireland, and other European nations. This strategic footprint underscores Tata Steel’s pivotal role in the region’s industrial and economic landscape.
Tata Steel is deeply committed to sustainability, aiming to achieve net-zero steel production by 2045 and reduce CO2 emissions by 30% by 2030. The company supplies high-quality steel products to critical sectors such as automotive, construction, engineering, and packaging. Its strategic partnerships and investments, including collaboration with JCB, further reinforce its leadership in sustainable steel production while supporting eco-friendly supply chains worldwide.
