A main contractor has been appointed to support Tata Steel’s £1.25bn green steel-making project at its Port Talbot steelworks site. UK construction and civil engineering firm Sir Robert McAlpine has been appointed to oversee the primary civil, structural, and building works for the development of a new electric arc furnace in the town.
According to reports, the steel production facility could eventually produce around 3m tonnes of steel per year if the council agrees to proceed further in the coming months, with a final project that includes a new electric arc furnace, ladle furnaces, and associated works.
While operations with the electric arc will mean no “virgin steel” created from scratch can be made at the site moving forward, and lesser labour is required to run it, plans say the new furnace will still have a capacity to produce million tonnes of steel each year through melting scrap steel.
The announcement follows the shutdown of the site’s two massive blast furnaces in September 2024, a move expected to result in approximately 2,000 job losses.
A separate contract is being awarded to Italian firm Tenova for building the electric arc furnace, with expectations of it being the biggest of its kind in the world once up and running towards the end of 2027.
A spokesperson for Tata Steel said, “This is a major initiative aimed at transforming Port Talbot to support Tata Steel UK’s decarbonisation goals, securing a more sustainable future and ultimately leading to a new chapter in UK steelmaking.”
“The project aims to be completed over a three-year construction period, with enabling works for the project commencing in Q1 2025 and main civil, structural, and building works scheduled to start in Q3 2025, subject to planning approval,” they added.
Craig Allen, managing director, at Sir Robert McAlpine, also said that they are proud to be part of the decarbonisation of Port Talbot Steelworks, which will play a pivotal role in turning the Port Talbot site into a world-leading hub for sustainable steel production.
“Our robust relationship with Tata Steel UK and long-standing industrial expertise makes us the ideal partner for this transformation. We look forward to working collaboratively, as part of a fully integrated project team, to deliver the project successfully,” he said.