5,000 jobs secured as electric arc furnace construction begins, but unions call transition ‘bittersweet’
WORK has officially begun on a £500 million green steel project in Port Talbot, marking a new chapter for the UK’s largest steelworks — but one that arrives after the loss of thousands of jobs and amid ongoing uncertainty for former workers.
On Monday (July 14), Business Secretary Jonathan Reynolds, Welsh Secretary Jo Stevens, and Tata Group Chairman N. Chandrasekaran broke ground on the construction of a new electric arc furnace (EAF), which will form the centrepiece of Tata Steel’s transition to low-carbon steelmaking.
The UK Government says the new facility will secure 5,000 jobs, reduce carbon emissions at the site by up to 90%, and place Welsh industry at the heart of a national push toward net zero.
Thousands already made redundant
While ministers praised the milestone as a sign of progress, many in the Port Talbot community are still grappling with the human cost of the transition.
In January 2024, Tata Steel announced it would shut down both blast furnaces, citing unsustainable losses and the need to modernise. The company confirmed that up to 2,800 jobs would be cut across the UK, with around 2,500 of those losses in Port Talbot.
Since then, hundreds of workers have already left, either through voluntary redundancy, early retirement, or compulsory lay-offs, with the first blast furnace already closed by autumn 2024.
Although the UK Government pledged £80 million in transition support, including retraining and regeneration funding, unions and some MPs say many workers have been left behind.
Union: ‘Bittersweet day for Port Talbot’
The Community Union, which represents many of the affected steelworkers, described the groundbreaking as “bittersweet.”
Assistant General Secretary Alasdair McDiarmid said: “This is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured.
“Today should represent the first step towards rebuilding our steel industry and creating new high-quality jobs. Going forward, we must see further investment to grow the business — both in Port Talbot and at crucial downstream sites.”
The union also emphasised that Electric Arc Furnaces require far fewer workers than traditional blast furnaces, and warned that unless the government steps up investment and industrial planning, many skilled workers could be lost from the industry for good.
Ministers promise long-term support
Speaking at the event, Business Secretary Jonathan Reynolds said: “This is our Industrial Strategy in action. We’re backing Welsh steelmaking and securing thousands of jobs for the future. This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible.”
Welsh Secretary Jo Stevens added: “The construction of Tata’s new furnace realises the promise we made to the community. Our Steel Strategy will deliver up to £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.”
Tata Group Chairman N. Chandrasekaran said the day marked “the beginning of a new era” for the company in the UK.
“At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership,” he said.
Council welcomes but acknowledges uncertainty
Leader of Neath Port Talbot Council, Cllr Steve Hunt, also welcomed the development, which received planning permission from the local authority earlier this year.
“This is the start of a new era for a town shaped by steelmaking,” he said. “We know change brings uncertainty, but this is a significant and welcome milestone as our communities adjust to the future shape of steelmaking in Port Talbot.”
What comes next
The Electric Arc Furnace is expected to be operational within a few years. Meanwhile, Industry Minister Sarah Jones chaired a meeting of the UK Steel Council in Cardiff on Monday to discuss the wider Steel Strategy — including procurement reform, energy cost relief for producers, and stronger safeguards against steel dumping.
As the dust settles on the groundbreaking ceremony, Port Talbot begins the difficult task of balancing hope for a cleaner, more sustainable future with the legacy of industrial decline and the livelihoods already lost.
