Steek giant Tata has hailed planning approval on Tuesday as they closed blast furnace to switch to an electric arc furnace to produce greener steel at Port Talbot, South Wales.
The electric furnaces mean fewer jobs will be needed and some 2,000 jobs are set to be lost amid the closure of the blast furnaces.
Rajesh Nair, chief executive of Tata Steel UK, said: “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot.
“Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027.
“This £1.25 billion investment is the most significant investment made in the UK steel industry in decades.
“The facility will secure high-quality steel production, preserve thousands of jobs, and safeguard steel making in Port Talbot for generations to come.”
Business and Trade Secretary Jonathan Reynolds said: “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week.
“Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change.”
Welsh Secretary Jo Stevens said: “This decision is a significant step forward, providing more certainty over Tata’s plans for the site and for the future of steelmaking in South Wales.
“As part of our improved deal with Tata Steel, we have provided £500 million to support the company’s transition to greener steelmaking.
“This is backed by a further £80 million which we are investing directly into the community to support individual steelworkers and their families, businesses in the supply chain and on the regeneration of Port Talbot as we drive future economic growth in the area.
“We promised that we would deliver for our steel communities and through this investment and the steel strategy we are doing just that.”
