Tata Steel Partners with Tenova for Electric Arc Furnace at Port Talbot Plant

Tata Steel has entered into a contract with Italy's Tenova to provide an electric arc furnace and related equipment for its Port Talbot facility in the UK. The EAF will have an annual capacity of 3 million tons, matching the capacity of the facility's decommissioned blast furnaces. This EAF will primarily process scrap metal sourced from the UK, estimated at 2-2.5 million tons annually, which will help reduce reliance on imported iron ore and enhance the sustainability of Tata Steel's supply chain.

In addition to the EAF, Tenova will also supply new ladle furnaces to refine molten steel for producing more complex grades. Once operational at the end of 2027, the EAF is expected to cut carbon emissions from steel production by 90%, equating to a reduction of 5 million tons of CO2 per year.

Tata Steel is currently working on the detailed design phase and will soon place separate orders for additional equipment at Port Talbot, which includes upgrades to the hot strip mill, casting machines, a new pickling line and cranes, along with construction management and civil engineering services.

The company has completed public consultations for its planning application and is collaborating with authorities to submit this application by November 2024. Major construction activities are anticipated to start around July 2025.

Tata Steel UK shut down its last blast furnace at the Port Talbot site on September 30, marking the end of pig iron and primary steel production there. Steel production is set to resume in 2027/2028, thanks to an investment totaling £1.25 billion—comprising £750 million from Tata Steel and up to £500 million in support from the UK government.