“With the U.K. government’s critical support, this complex and ambitious transformation of Port Talbot has the potential to make the plant one of Europe’s premier centers for green steelmaking. I would like to thank the U.K. Steel Committee and various departments of the U.K. and Welsh governments for their support in reaching this agreement. We now look forward to the efficient and speedy execution of the EAF project,” said T V Narendran, Tata Steel chief executive officer and managing director.

The company said the GBP1.25 billion project will safeguard the U.K.’s steel sovereignty, secure steelmaking in Port Talbot and preserve 5,000 jobs. The project will include an electric arc furnace and ladle metallurgy furnaces, a new coilbox and crop shear for the hot strip mill, and a cranes package.

Basic engineering has been completed, and equipment orders will be placed soon, Tata Steel said. Heavy construction is to begin next summer, and the EAF is expected to be operational within three years.
As part of the conversion, the company has wound down operations at its No. 5 blast furnace and Morfa coke ovens. 

“Plans are progressing to close blast furnace No. 4 and the wider heavy-end operations at Port Talbot by the end of September, with supply chain arrangements in place to serve customers through the transition period until the EAF is commissioned,” Tata Steel said.