Tata Steel to begin construction work of UK's low-carbon project this month

New Delhi: Home-grown Tata Steel on Tuesday said the company will begin the construction of its low-carbon EAF-based steel making project in the UK this month with an investment of around 1.5 billion pounds.

Of the 1.5 billion pounds, 500 million pound is funded by the UK Government.

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Tata Steel aims to commence operations at the project by 2027, as per the company's annual report for FY 2024-25.

In a statement, Tata Steel said, "The work on the EAF project is progressing with construction at Port Talbot on course to commence this month."

The company has received necessary approvals for its USD 1.5 billion project at Port Talbot, Tata Steel CEO & MD T V Narendran, and ED & CFO Koushik Chatterjee said in the company's annual report for FY2024-25.

"We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28, supported by 500 million pounds in the UK government funding," the management said.

India-based Tata Steel owns the UK's largest steelworks of 3 million tonnes per annum (MTPA) at Port Talbot in South Wales. As part of its efforts to reduce carbon emissions, the company is transitioning from the blast furnace route to the low-emission electric arc furnace process, which will utilise the locally available scrap.

The company's upstream operations in the UK have been shut, and Tata Steel is using substrate from India and Netherlands operations to service existing customers in the UK.

The deliveries from UK was at 0.60 million tonnes (MnT) in June quarter as against 0.68 MnT in the first quarter of FY25.

In India, Netherlands and Thailand, Tata Steel's production remained almost flat at 5.26 MnT, 1.70 MnT and 0.33 MnT, respectively.

The deliveries in April-June quarter of 2025-26 from India was at 4.75 MnT, 1.50 MnT from Netherlands and 0.34 MnT from operations in Thailand.

The maintenance related shutdowns in Jamshedpur (reline of G Blast Furnace) as well as at Neelachal Ispat Nigam Limited (NINL) have led to a decline in finished goods production, adversely impacting our deliveries. Operations have since resumed at NINL and the reline of G Blast Furnace is progressing and is expected to be completed in July 2025, the company said.

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