Today Tata Steel is ceasing operations at Blast Furnace 4 along with other associated iron and steelmaking assets at Port Talbot, the UK’s largest steel plant, bringing an end to ironmaking at the site.
Many of the existing ‘heavy end’ assets —such as blast furnaces and coke ovens— in Tata Steel UK’s Port Talbot works, had reached the end of their operational life. Sustaining the current configuration any longer, or further investment in the traditional heavy end, was not economically or environmentally viable.
Following the closures earlier this year of the deep-water harbour, Morfa Coke Ovens, Blast Furnace 5 and Continuous Caster 2, the planned iron and steelmaking asset closures are completed today with the cessation of the Sinter Plant, Blast Furnace 4 and primary steelmaking, along with some secondary steelmaking and energy systems.
However, steelmaking at the site will resume in 2027/2028 through the investment of £1.25 billion in Electric Arc Furnace based steelmaking, using UK-sourced scrap steel. Tata Steel’s planned £750 million investment in low-CO2 ‘green’ steelmaking will be augmented by the £500 million Grant Funding Agreement signed recently with the UK Government.
Additionally, Tata Steel has started to share detailed drawings and virtual reality simulations of the new electric arc furnace with local communities, customers and the local planning department. The company also expects to announce the electric arc furnace equipment manufacturer in the coming weeks. Some of the secondary steelmaking assets and two remaining continuous casters are being retained for major investments in advance of the start of the electric arc furnace.
Rajesh Nair, CEO of Tata Steel UK said: “I am deeply conscious how difficult today is for everyone associated with our business. Throughout this transition we are doing everything possible to minimise the impact on all those who are affected by the changes we are making.
“Today marks a significant event in the history of iron and steelmaking in the UK as the legacy steel making assets in Port Talbot close, having reached their end-of-life.
“It is important at this juncture, to pause, recognise and credit the huge contribution of the many thousands of people and the technologies that have sustained our industry and communities here for generations.
“At the same time, we know that Port Talbot has been a steel plant where industrial processes and new technologies have been introduced to enhance its output, often setting standards for other steelmakers. In that tradition, we are planning a brighter, greener future through our £1.25 billion investment in low CO2 scrap-based steelmaking, which will sustain more than 5,000 jobs across the UK, and which will also give Tata Steel businesses across the UK a competitive market advantage.
“I also believe our ability to supply customers with the highest quality low CO2 steels will provide a catalyst for others to co-invest in the South Wales region, and we look forward to future collaborations between business partners, academia, governments and communities that will secure that future.”
Video:
A Virtual Reality simulation of the new electric arc furnace can be found here :See Tata Steel UK's new Electric Arc Furnace! (youtube.com)
For further information:
- Tim Rutter: tim.rutter@tatasteeleurope.com +44 (0)7850 990755
- Abigail Thomas: abigail.thomas@tatasteeleurope.com +44 (0)7972 575062
- Press Office: ukpressoffice@tatasteeleurope.com
NOTES:
- BF4 was completed in January 1954 as part of a £54 million investment project approved by the Government in 1952.1
- Following its construction, it underwent a number of upgrades and rebuilds including re-linings in 1978 and 1985, total rebuilds in 1992 and 2013.2
- The announcement today is part of a programme that is one of the largest industrial transition projects in the UK. Its implementation has been enabled by the responsible approach of Tata Steel’s workforce, the UK Steel Committee representing the trade unions, and support of the UK Government.
- During the transition period supply chain arrangements in place to serve customers through the transition period until the EAF is commissioned.
- Equipment orders will be placed shortly for the Electric Arc Furnace (EAF) and ladle metallurgy furnaces, a new coil box and crop shear for the hot strip mill, a cranes package, and for construction management and civil engineering.
- Tata Steel has already launched public consultation on specific activities and is working closely with the authorities to apply for planning approvals by November 2024, with a view to commencing large scale site work around July 2025. The EAF is expected to be operational within three years.
- For employees leaving the business Tata Steel has offered its most generous-ever support package, and a comprehensive voluntary redundancy aspiration process combined with cross-matching and/or re-skilling
About Tata Steel UK
- The Tata Steel Group has been named one of the most ethical companies in the world and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
- Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030.
- Tata Steel is the largest steelmaker in the UK with primary steelmaking at Port Talbot in South Wales supporting manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France, Germany and UAE. It also benefits from a network of sales offices around the world.
- Tata Steel employs more than 8,000 people and has an annual crude steel capacity of 5 million tonnes, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
- Tata Steel Group is one of the world's most geographically diversified steel producers, with operations and a commercial presence across the world.
- The group recorded a consolidated turnover of around US$27.7 billion in the financial year ending March 31, 2024.