- Tata Steel to proceed with £1.25 billion investment to build Electric Arc Furnace in Port Talbot, UK.
- Investment aims to replace blast furnaces with more efficient electric arc furnaces, preserving 5,000 jobs.
- Shift to new furnaces expected to reduce UK emissions by 2% with government subsidies of £500 million.
Tata Steel has confirmed its commitment to invest £1.25 billion in building a modern Electric Arc Furnace in Port Talbot, UK, in collaboration with the government. This investment follows the closure of two blast furnaces earlier this year, a decision that significantly impacted the local community and unions.
The plan involves replacing the traditional blast furnaces with electric arc furnaces, which are more efficient and environmentally friendly. Tata Steel aims to begin construction by August 2025, with orders for furnace equipment expected to be placed by September. This investment is crucial for preserving 5,000 jobs and ensuring future supplies to customers.
The shift to electric arc furnaces aligns with efforts to reduce emissions, with potential savings of about 2% if renewable electricity is used. The UK government has pledged support through subsidies totaling £500 million, signaling its commitment to promoting sustainable steel production. Tata Steel’s decision to proceed with the investment comes after careful consideration of various proposals, prioritizing viability and long-term sustainability.
