25 April 2024
Press Release

Tata Steel will proceed with its £1.25 billion investment to build a state-of-the-art electric arc furnace in Port Talbot

Slab in hot mill

Following 7 months of formal and informal national level discussions with the UK trade unions, Tata Steel will proceed with its £1.25 billion investment to build a state-of-the-art Electric Arc Furnace in Port Talbot and commence closure of the existing heavy end assets in the following months  

 

  • Largest investment in UK steel industry for decades, safeguards steel sovereignty in Britain, preserves 5,000 jobs and secures future supplies to customers. 
  • Tata Steel has informed the trade unions that Port Talbot’s two Blast Furnaces No.5 and No.4 will close by end of June, and by end of September respectively.  
  • The multi-union proposal to maintain one blast furnace through the transition would have incurred at least £1.6 billion of additional costs (including higher operating costs and higher capital expenditure), created significant operational and safety risk, and put the business’s future continuity in jeopardy. 
  • Discussions will continue with the trade unions during the next 2 weeks on a potential Memorandum of Understanding on the future ambitions of the business and the impact of the restructuring on employees. 
  • Tata Steel has offered its most generous severance terms ever to impacted employees, under a financial support plan, alongside wide-ranging retraining and community support schemes. 
  • A Voluntary Redundancy Aspiration process will be launched across Tata Steel UK from the 15th of May 2024. 
  • Tata Steel has begun preparations to place equipment orders for the Electric Arc Furnace by September 2024 and based on current permitting timelines, begin construction on the project by August 2025.  
  • Tata Steel has secured most of the required substrate for the full transition period for the UK’s downstream mills.  
  • Tata Steel has agreed detailed terms with the UK Government on the proposed grant package to support the £1.25 billion investment, with final documents to be executed in the coming weeks. 

Following its 19 January 2024 proposal to restructure the UK business and 7 months of formal and informal discussions with the UK Steel Committee (the multi-union forum) and its advisers, Tata Steel has today announced its decision, paving the way for a major transformation of Britain’s la