Tata Steel UK has entered into an agreement with JCB to supply low-carbon or “green” steel from its Port Talbot facility. This collaboration aligns with JCB’s focus on reducing carbon emissions in its manufacturing and machinery.
The supply agreement follows Tata Steel UK’s announcement of a £1.25 billion investment, backed by the UK Government, to transition its Port Talbot operations to high-quality, low-CO2 steel production. A key component of this plan is the construction of a 3-million-tonne-per-year electric arc furnace (EAF), one of the largest globally.
The EAF will convert UK-sourced scrap into high-quality steel, reducing reliance on imported raw materials like iron ore and coal. Once operational, the new facility is expected to cut carbon emissions at Port Talbot by up to 90% and lower the UK’s overall carbon footprint by approximately 1.5%.
Anil Jhanji, Chief Commercial Officer of Tata Steel UK, emphasized the importance of this partnership: “Our transition to green steel is driven by the needs of long-standing customers like JCB, who are committed to decarbonizing their supply chains. This collaboration underscores the shared commitment of two major UK manufacturers to creating a low-carbon future.”
Wayne Asprey, Group Purchasing Director at JCB, added: “This agreement with Tata Steel marks a vital step in our efforts to decarbonize our supply chain. We fully support Tata Steel’s investment plans and are proud to be among the first to secure British-made green steel.”
JCB has been a leader in sustainable innovation, achieving milestones such as introducing the first electric mini-digger in 2018 and developing hydrogen-powered construction machines in 2021. The company continues to pioneer zero-emission technologies in the construction sector.
In October 2024, Tata Steel signed a contract with Tenova to deliver advanced equipment for the new EAF at Port Talbot. The transformation of the facility is scheduled to begin in the summer of 2025. This initiative aims to make Port Talbot a hub for green steel production in Europe.
The £1.25 billion investment, which includes up to £500 million in UK Government funding, represents the most significant capital investment in UK steel production in decades. Additionally, 75% of the raw materials required for the site will be sourced domestically, up from the current 10%, enhancing self-reliance and resilience in steelmaking.
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.
