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Home » Italian Firm To Build £1.2bn New Electric Arc Furnace At Port Talbot

Italian Firm To Build £1.2bn New Electric Arc Furnace At Port Talbot

Tata Steel has signed a contract with a leading Italian metals technology manufacturer to build its new electric arc furnace in Port Talbot. The Indian-owned steel maker has appointed Tenova to deliver the £1.2bn project, which is being backed with £500m of funding from the UK Government.

The company said the contract with Tenovo marked a “significant milestone” in the switch to produce greener steel in Port Talbot. The electric arc furnace (EAF) is replacing traditional blast furnaces, which have been shut down with the loss of more than 2,000 jobs.

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Planning for the EAF, which will make steel from scrap steel, will be submitted to Neath Port Talbot Council next month. Approval, with conditions, is anticipated next February, with spades in the ground in June or July. Once operational at the end of 2027, it will reduce the site’s steelmaking carbon emissions by 90%, compared to when it operated the blast furnaces – equivalent to five million tonnes of CO2 a year. It will has an annual capacity for three million tonnes of steel

New ladle metallurgy furnaces, also supplied by Tenova, will then refine the molten steel to make more complex grades required by manufacturers in the UK and other countries The use of scrap will also significantly reduce the UK’s reliance on imported iron ore, strengthening the resilience of the UK’s manufacturing supply chains.

Mr TV Narendran, chief executive of Tata Steel, said: “This landmark agreement will enable us to transform our steelmaking site that will not only support the UK’s decarbonisation journey but also provide economic development opportunities for south Wales.

“This marks an important milestone in making low-CO2 steelmaking a reality in Port Talbot as well as reducing the UK’s carbon emissions and supporting our customers with their own carbon reduction targets.”

Business Secretary Jonathan Reynolds said: “This partnership follows in the footsteps of an improved deal between the government and Tata Steel, and is further proof of our commitment to a bright future for UK steelmaking.

“Technology like the furnaces made by Tenova is critical to decarbonising the industry, unlocking its potential to provide skilled jobs, and creating economic stability for future generations of steelworkers in south Wales.

“Our upcoming steel strategy will provide further certainty for the sector as we set out our plan for its long-term growth and viability, backed by up to £2.5bn for steel.”

Paolo Argenta, executive vice-president for the Tenova Upstream Business Unit, said: “We are working with Tata Steel UK at an unprecedented level of transparency and co-operation, and we are confident this will lead to a successful project implementation.”

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