Work to bring a “cleaner, greener future” to Welsh steel making is getting underway.

Tata Group was today holding a groundbreaking event for the company’s state-of-the-art electric arc furnace (EAF) facility at Port Talbot, a £1.25bn decarbonisation project which is expected to reduce the site’s carbon emissions by around 90%.

This major initiative is 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.

Community Union said start of the work was a “bittersweet day” after the “devastating closure” of the site’s blast furnaces last year.

But the new project, made possible by a £500m UK government grant provided as part of the improved deal for Port Talbot’s transition, will secure 5,000 jobs at the site

Business secretary Jonathan Reynolds joined Tata Group executives and Wales secretary Jo Stevens to break ground on the project and start construction.

Meanwhile, industry minister Sarah Jones, today chaired a meeting of the Steel Council at 7Steel in Cardiff to work towards finalising the upcoming Steel Strategy – backed by up to £2.5bn of investment.

The new EAF - set to be commissioned at the end of 2027 - is expected to reduce Port Talbot’s carbon emissions by five million tonnes of CO₂ per year, while securing sustainable steel production and supporting 5,000 UK jobs directly.

Business secretary, Jonathan Reynolds, said the start of work was “great news for Welsh steelmaking” and will give “certainty to local communities and thousands of local jobs for years to come”.

Chair of Tata Group, Natarajan Chandrasekaran, said: “This is an important day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new electric arc furnace, but a new era for sustainable manufacturing in Britain.

“At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.

“This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”

The Port Talbot EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce three million tonnes of steel per year.

Construction is being led by main contractor Sir Robert McAlpine, alongside a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott and Systems Group.

Community assistant general secretary, Alasdair McDiarmid, said: “This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured. The workforce needs the electric arc furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running.”

“Today should represent the first step towards rebuilding our steel industry and creating new high-quality jobs for our steel communities. Going forward we must see further investment to develop and grow the business, both here in Port Talbot and across all the crucial downstream sites."