5,000 jobs secured as Tata Steel breaks ground on £500m green steel project in Port Talbot
5,000 jobs secured as Tata Steel breaks ground on £500m green steel project in Port Talbot
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Construction has officially begun on Tata Steel’s new electric arc furnace (EAF) in Port Talbot, a major milestone in the UK’s green industrial transformation that will secure 5,000 jobs and significantly reduce carbon emissions in Welsh steelmaking.
The project, made possible by a £500 million UK government grant, was marked by a groundbreaking ceremony attended by Business Secretary Jonathan Reynolds, Wales Secretary Jo Stevens, and Tata Group Chairman N. Chandrasekaran. The investment forms part of a broader UK Industrial Strategy aimed at revitalising the steel industry and accelerating the country’s transition to low-carbon manufacturing.
“This is our Industrial Strategy in action,” said Business Secretary Jonathan Reynolds. “It’s great news for Welsh steelmaking and the thousands of jobs and communities that depend on it.”
The electric arc furnace, a cleaner alternative to traditional blast furnaces, is expected to cut Port Talbot’s carbon emissions by 90%. The shift to greener technology also positions the UK steel sector as a potential global leader in sustainable steel production.
The government’s support for the project came just 10 weeks after taking office, and the initiative is a cornerstone of its soon-to-be-finalised Steel Strategy, which could unlock up to £2.5 billion in investment across the UK steel industry.
As part of this industrial push, the government has also introduced:
- Energy cost reductions for steel manufacturers
- Strengthened UK steel safeguard measures to protect against foreign imports
- Reformed procurement rules to prioritise British-made steel in public projects
- Ongoing negotiations with the United States to remove 25% tariffs on UK steel and aluminium
At the launch, Tata Group Chairman Mr. Chandrasekaran emphasised the long-term significance of the investment: “Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future.”
The new EAF forms part of Tata Group’s wider UK investment strategy, which also includes projects in automotive and technology sectors, underlining the firm’s ongoing commitment to British industry.
Steelworkers’ union Community, which represents the majority of Tata’s South Wales workforce, welcomed the development with cautious optimism.
“This bittersweet day is a consequence of the devastating closure of the blast furnaces,” said Alasdair McDiarmid, Assistant General Secretary. “But importantly, a future for Port Talbot steelmaking is being secured.”
The union called for continued investment across Tata’s UK operations to ensure long-term growth and sustainability in the sector.
Meanwhile, Industry Minister Sarah Jones chaired a Steel Council meeting in Cardiff, bringing together leaders from Tata Steel, British Steel, and other major industry players to finalise the UK’s national Steel Strategy.
Wales Secretary Jo Stevens reaffirmed the government’s commitment to steel as a national strategic asset: “The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations. With floating offshore wind, a planned Celtic Freeport, and regeneration funds, Port Talbot has a bright future.”
Once completed, the electric arc furnace is expected to revolutionise steel production in the UK, slashing emissions, cutting energy costs, and anchoring thousands of jobs in South Wales and beyond. As the UK steel sector undergoes one of its most significant transitions in decades, the Port Talbot project could serve as the blueprint for sustainable heavy industry nationwide.
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