Tata Steel to Begin Construction of UK Electric Arc Furnace Plant, Eyes Production from 2027

Tata Steel is eyeing to build its low-carbon electric arc furnace (EAF) steelmaking unit at the Port Talbot plant in the UK. The steel giant is set to start the construction of the facility in July this year and operations are likely to kickstart in 2027. The upcoming facility is projected to produce 3.2 million tonnes of low-emission steel annually. 

“A bold new chapter begins for steelmaking in the UK as Tata Steel builds a state-of-the-art electric furnace (EAF), paving the way for low-emission steel. Using recycled scrap, the new steelmaking facility will reduce the on-site carbon emissions by up to 90%,” said the company in its annual statement.

Tata Steel has a 3 million tonnes per annum facility at Port Talbot, South Wales, in the UK. The giant is transitioning from the blast furnace route to the low-emission electric arc furnace process. The company has planned to utilise the locally available scrap to reduce carbon emissions. 

Tata Group’s steel giant has earmarked capex worth Rs 15,000 crore for its operations in India, the UK and the Netherlands in the current fiscal year. Nearly 80% of the earmarked capex will be spent on ongoing projects in India. 

“For FY26, we are looking to have a capex of Rs 15,000 crore,” Tata Steel CEO & MD T V Narendran told PTI. 

The company has planned to ramp up a 5 MTPA blast furnace at Kalinganagar to construct an electric arc furnace (EAF) in Ludhiana.  

In the Netherlands, the steel major has adopted a comprehensive transformation programme to maximise production efficiences, lower fixed costs and optimise product mix and margins at the Netherlands facility. The giant has a steel manufacturing plant in the Netherlands’s IJmuiden, which produced an estimated 6.75 MTPA of liquid steel in FY25. 

Tata Steel’s India revenue stood at Rs 34,661 crore and EBITDA was Rs 7,418 crore in FY25, UK revenues were 551 million pounds and EBITDA loss stood at 80 million pounds, and the Netherlands revenues were 624 million euros and EBITDA was 14 million euros.