Construction has officially begun on Tata Steel's electric arc furnace (EAF) at the Port Talbot steelworks, securing 5,000 jobs and marking a major step towards greener steel production.
A new chapter in Welsh industrial history began today as Business Secretary Jonathan Reynolds and Welsh Secretary Jo Stevens joined Tata Group Chairman N. Chandrasekaran to break ground on the construction of a state-of-the-art electric arc furnace (EAF) at the Port Talbot steelworks. This pivotal moment not only secures 5,000 vital jobs but also signifies a monumental leap towards a more sustainable and low-carbon future for UK steel production.
The £1.25 billion project, significantly bolstered by a £500 million grant from the UK Government, represents a cornerstone of the nation's modern Industrial Strategy. The government's swift action, agreeing to the improved deal for Port Talbot's transition within just ten weeks of taking office, has been hailed as a major win for Welsh steelmaking.
Industry Minister Sarah Jones is chairing a crucial meeting of the Steel Council at 7Steel in Cardiff this morning. The council, comprising industry leaders from across the sector, including British Steel and UK Steel, is working towards finalising the comprehensive UK Steel Strategy. This strategy is backed by an ambitious investment of up to £2.5 billion and aims to rebuild and decarbonize the UK steel industry, maintaining jobs and fostering growth.
Recent positive developments which were reflected upon at the Steel Council meeting, include new measures announced in the UK's modern Industrial Strategy to slash energy costs for steel producers. Additionally, the UK has strengthened its steel safeguard measures to protect the industry from foreign import surges and bolstered procurement rules to prioritize UK-made steel in public construction projects. The government is also actively engaging with the US to remove 25% tariffs on steel and aluminium, with the UK currently being the only country not paying a 50% tariff rate.
Business Secretary Jonathan Reynolds emphasized the significance of the project, stating, "This is our Industrial Strategy in action and is great news for Welsh steelmaking, backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come." He reiterated the government's commitment to a vibrant future for the steel industry, highlighting how the £500 million funding made this project possible. The EAF is projected to reduce the Port Talbot site's carbon emissions by an impressive 90%, marking a substantial step towards greener steel production.
N. Chandrasekaran, Chairman of Tata Group, expressed his pride in this milestone. "Today's groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain," he remarked.
