MAJOR plans to develop a new electric arc furnace at Tata Steel’s Port Talbot site have been approved by Neath Port Talbot Council.
The £1.25 billion project, submitted by the Indian-based steel giants, was given the go-ahead at a Neath Port Talbot Council planning committee held on February 18, 2025.
It will now see work on the plans, which are described as being of “national strategic importance” beginning in the summer of 2025 with an estimated completion time of three years.
The approval gives the green light for Tata Steel to begin with the demolition of a number of existing buildings and structures at the steelworks site, along with the creation of a new electric arc furnace that is expected to be one of the biggest of its kind in the world.
The decision comes just months after the closure of the site’s two blast furnaces in September, 2024, with around 2,000 redundancies currently expected for workers as a result.
It also followed the announcement that UK construction and civil engineering company Sir Robert McAlpine would be responsible for managing the main civil, structural and building works for the development, with Italian firm Tenova building the new furnace.
While operations with the electric arc will mean no “virgin steel” created from scratch can be made at the site moving forward, and not as many members of staff will be required to run it, officers said the facility would still be able to produce around £3.2 million tonnes of steel each year once up and running through the melting of scrap steel.
Additionally, it was highlighted that the “green” project could lead to further investment in the town as well as an improvement in air quality, with a significant reduction in green house gas emissions coming as a result of the new plant.
Speaking at the meeting, Councillor Wyndham Griffiths of Bryncoch North, said the project was important as it would keep steel making in Port Talbot for a long time to come.
Councillor Rob Jones, who is the Labour Group leader for Neath Port Talbot, added: “We do know it’s come at a cost but it’s the future and unless we embrace the future and move forward we will stand still, and that in all honesty is not a position that this town and this community can afford to do.”
Rajesh Nair, CEO of Tata Steel UK said: “This £1.25 billion investment would be the most significant investment made in the UK steel industry in decades. It will secure high quality steel production, preserve thousands of jobs and safe-guard steel making in Port Talbot for generations to come.
“Additionally, the move towards green steel making will have significant environmental benefits. This includes a reduction in direct on-site Co2 emissions of up to 90%, equivalent of 5 million tonnes.”
He also noted that orders had already been placed for steel produced by Port Talbot’s electric arc furnace with low Co2 steel now being sought after by customers around the world.
Following discussions between officers, members, and representatives of Tata Steel, the plans were approved unanimously.
