A NUMBER of government ministers have gathered in Port Talbot to mark the beginning of works on a new electric arc furnace at the town’s steelworks.
The £1.25 billion project, submitted by the Indian-based steel giants Tata, was given the go-ahead by Neath Port Talbot Council in February of 2025 to begin the demolition of a number of buildings and structures at the site along with the creation of a new electric arc furnace.
The event saw UK Business Secretary Jonathan Reynolds along with First Minister Eluned Morgan, the Welsh Secretary Jo Stevens, and representatives from Tata Steel take part in a ceremony near the lagoon where the furnace will eventually be located.
It marked the start of the works, which have been described as being of “national strategic importance” with the development now predicted to be up and running by the end of 2027.
Once fully operational it is expected to be one of the biggest electric arc furnaces in the world with the capacity to produce around 3 million tonnes of steel each year through the melting of scrap steel.
This could include materials for internal car parts, construction cladding, steel cans and domestic appliances, with additional contracts for the “green steel” understood to have been signed with construction equipment manufacturer JCB.
Located within the existing steel making plant, it will reduce carbon emissions produced at the site by as much as 90%, having only a small visual impact on the area with the new furnace expected to be barely visible from its surroundings.
Speaking to the Local Democracy Reporting Service, Peter Jones who is the programme manager for the new arc furnace said the move to develop the technology was one that meant absolutely everything to the Port Talbot site.
He said: “The old plant had its day in my view and perhaps the companies view, but this should give us and will give us a sustainable future which this place has really struggled to get to.
“The new technology is state of the art. It’s the right technology for this type of operation in the UK now as electricity prices start to come down naturally through more renewables.”
Tata Steel chairman Natarajan Chandrasekaran added: “This is an important day for Tata Group, Tata Steel and for the UK.
“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, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.”
Even-though production with the electric furnace will mean no “virgin steel” created from scratch can be made at the site moving forward, with more than 2,000 jobs lost as a result – the UK Government has said with its £500m investment into the new furnace 5,000 jobs will still remain in the town.
First Minister of Wales Eluned Morgan said: “Steelmaking is in the Welsh blood and what we’ve got is a change in the way we make steel here, but steel is very much here to stay, and we’re opening a new chapter in the history of steel in Wales.”
Neath Port Talbot Council leader Cllr Steve Hunt added: “This is start of a new era for a town which has been shaped by steelmaking and now looks to take its place at the forefront of a greener steel industry.
“I would like to commend the role our planning department has played in getting to this point.
“We know that change often comes with uncertainty, so this is a significant and welcome milestone as our communities adjust to the future shape of steel making in Port Talbot.”
