Port Talbot moves towards arc furnace future with groundbreaking ceremony
Port Talbot’s steelworks will mark the beginning of its move towards green steel production on Monday.
UK Government Ministers will join Tata Steel chiefs at the steel plant for a groundbreaking ceremony to mark the beginning of the new electric arc furnace’s construction.
Natarajan Chandrasekaran, chairman of Tata Steel and the Tata Group, described the moment as an “important day for Tata Group, Tata Steel and for the UK”.
He added: “At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation and demonstrating our commitment to responsible industry leadership.”
The Government has backed plans for the new £1.25 billion electric arc furnace at the Tata steelworks with a £500 million investment.
Greener
The switch-on is due to take place in 2027 as part of the push towards greener production.
Tata insists the move will cut Port Talbot’s emissions by 90%, while ensuring the future of steel production in the town.
The plant’s last blast furnace was shut down in September 2024, with 2,500 workers to lose their jobs in the aftermath.
The new electric arc furnace will be able to process scrap steel, but is not able to make virgin steel as a blast furnace can.
Some MPs have said workers in south Wales have been let down in comparison with those retaining jobs in Scunthorpe, where ministers took control of the steelworks to prevent the closure of its blast furnaces.
The Government has said the two steelworks were in different situations.
‘Great news’
Ahead of the groundbreaking ceremony, Business Secretary Jonathan Reynolds said: “This is our Industrial Strategy in action and is great news for Welsh steelmaking, backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.
“This Government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible.”
Secretary of State for Wales Jo Stevens, meanwhile, said the new furnace would help to realise “the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future”.
First Minister of Wales Eluned Morgan said: “This is a momentous day for heavy industry in Wales, as the electric arc furnace has secured the long-term future of steel making at Port Talbot.
“Seeing spades in the ground today provides a tangible sign of Tata’s intention to continue producing steel in the area, an industry which has provided quality jobs to local people for generations.”
Welsh Conservative leader Darren Millar said: “This is an important milestone on the road to a sustainable future for the Port Talbot Steelworks.
“It was a key part of the plan announced by the previous UK Conservative Government and will save thousands of jobs in the steelworks and the wider local economy.”
Turning point
Responding to the groundbreaking for the arc furnace, Community Assistant General Secretary Alasdair McDiarmid said: “This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured.
“The workforce needs the Electric Arc Furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running.
Luke Fletcher MS, Plaid Cymru spokesperson for Economy and the Member for South Wales West added: “Today’s news of construction work starting at Port Talbot’s new electric arc furnace is of course welcome, but we cannot forget the opportunity that has been lost here to safeguard over 2000 primary steel making jobs for the future.
“Labour has promised a lot to the communities in and around Port Talbot, it’s vital that those promises are realised now.”
‘Sugarcoating’
Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “Ensuring the electric arc furnace is completed on time is absolutely essential to safeguard as many skilled jobs as possible.
“However, the people of Port Talbot won’t easily forget, or forgive, the Government’s failure to step in and protect local jobs, as they did in Scunthorpe. That disparity has rightly been seen as a betrayal of our industrial communities.”
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Celebrate the loss of 2000 jobs here in Wales.
I hope those in Port Talbot and the wider South Wales region will never forget what the Conservative and Labour parties have done to their community. Both have effectively said that Welsh workers are lesser than English. Actions speak louder than words. And yes, they will spin it in a positive light, they always do, but we in Wales are surplus to requirements it seems. I have 2800 steel workers put of the employment scrapheap and thousands more in the service industry as evidence. In 1765 during the French revolution, is was said that Queen Marie Antoinette uttered those famous… Read more »
It is critical for Senedd / Local Authorities / businesses to get behind the steelworks to create businesses to use the steel in construction / consumer goods etc.
We need a campaign to buy products made from Welsh steel and then consumers may choose to buy a car if made from Welsh steel as opposed to a car made of German steel!
Unfortunately steel stock and other goods will slide into the freeport from all over the world. After a little time sitting in storage it will slide back out with Supplied by Cymru certification.
They did it with Newport for years.
Millenium Stadium and Millenium Centre used only Welsh steel (via Spain).
I worry about the cost of electricity, and in view of this concern wonder if this green steel making effort can run without further government ongoing subsidy.