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Ambitious transformation from blast furnaces to green steelmaking in the UK

Tata Steel will commence statutory consultation as part of its plan to transform and restructure its UK business. The announcement was made on 19th January as news broke about the decision.

Under the transformation plan, Tata Steel will embark on a £1.25 billion investment in electric arc furnace technology in Port Talbot and asset upgrades to secure long term, high quality production at the UK’s largest steelmaker. The proposed investment is supported by the UK government, which has committed up to five hundred million pounds to enable the transformation. Tata Steel plans to invest seven hundred and fifty million pounds in the project, alongside funding for a comprehensive support package for affected employees, business restructuring and transition costs as part of its long term commitment to UK production.

Tata Steel has engaged in several months of detailed discussions with the UK Steel Committee and its advisors, which examined feasibility studies and financial analysis of the long term viability of steelmaking at Port Talbot. Under Tata Steel’s proposed restructuring programme, Port Talbot’s two high emission blast furnaces and supporting facilities would be closed in a phased manner. The first blast furnace and coke ovens closing around mid-2024 and then progressively winding down the remaining heavy end assets during the second half of the calendar year. The proposal also includes a wider restructuring of other locations and functions across the company, including the intended closure of the continuous annealing processing line (CAPL) in March 2025.

Tata Steel has developed detailed plans which would enable it to secure continuity of supply through its existing downstream and steel processing sites for UK and overseas customers, utilising imported semi-finished steel including from Tata Steel plants in the Netherlands and India as well as other select strategic suppliers until the commencement of electric arc furnace production. To be able to deliver the proposed electric arc furnace in 2027, Tata Steel has begun engineering design work and construction planning for a furnace which would be among the most modern in the world. It is in advanced planning discussions with National Grid in relation to enabling infrastructure and has also begun engagement with the local authority and regulators.

For more detailed information on the restructuring visit: