Mumbai, 09/07/2025: Tata Steel has announced that it will begin construction of its new low-carbon steel plant in the UK this month. The project, which uses an electric arc furnace (EAF) technology, will be set up at Port Talbot in South Wales and involves a total investment of £1.5 billion. Out of this, the UK government is contributing £500 million to support the shift to greener steel production.
In its annual report for FY2024-25, Tata Steel said that the construction work at Port Talbot is ready to begin and the company aims to start operations by 2027. The new steel plant will replace the traditional blast furnace with a modern electric arc furnace, which is a more environment-friendly method that uses scrap steel as raw material and produces lower carbon emissions.
Tata Steel CEO & MD T V Narendran and Executive Director & CFO Koushik Chatterjee confirmed that all required approvals for the project have been received. “We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28,” the company said.
The Port Talbot site currently houses the UK’s largest steelworks, with a capacity of 3 million tonnes per year. However, Tata Steel has already shut down some of its upstream operations in the UK. For now, it is importing steel from its plants in India and the Netherlands to meet customer demands in the UK.
In terms of output, the company reported that deliveries from the UK were 0.60 million tonnes in the April–June quarter, compared to 0.68 million tonnes in the first quarter of FY2025. Steel production in India, Netherlands, and Thailand stayed steady at 5.26 MnT, 1.70 MnT, and 0.33 MnT, respectively.
Deliveries during the same April–June period were 4.75 MnT from India, 1.50 MnT from the Netherlands, and 0.34 MnT from Thailand.
Tata Steel also noted that maintenance shutdowns affected its production in India. A major repair (reline) of the G Blast Furnace in Jamshedpur, along with temporary closure at Neelachal Ispat Nigam Limited (NINL), led to lower finished goods output. However, operations have now resumed at NINL, and the Jamshedpur reline project is expected to be completed by July 2025.
With the UK project moving forward and maintenance work nearing completion in India, Tata Steel is looking ahead to more stable and greener operations in the coming years.
