PORT TALBOT: Steel plan sparks cautious hope — but big questions remain for Welsh jobs

At the heart of the strategy is a push to rebuild domestic steelmaking, including new tariffs on imports, a target for half of UK steel demand to be met at home, and billions in funding to support the industry’s transition.

For communities built around steel, the announcement lands at a critical moment.

In Port Talbot, the shift away from traditional blast furnaces is already under way, while in Llanelli, the Trostre works continues to play a key role in Welsh production. Together, they form part of an industry now facing one of the biggest changes in its history.

Local Labour MP Dame Nia Griffith has backed the plan, arguing it signals a more serious commitment to the sector after years of uncertainty.

Dame Nia Griffith, MP for Llanelli, said:
“The steel industry is a vital core element of our economy here in Wales, generating growth and providing thousands of jobs, including hundreds in my own constituency.

“This is a clear, well thought-out, long-term strategy for our steel industry that will help deliver the high-quality steel our country needs for our key infrastructure, our national security and for the wider economy.”

Her support reflects the Government’s central message — that the strategy will not only protect jobs, but put the industry on a more stable footing for the future.

But that optimism is far from universal.

Opposition figures say the plan raises as many questions as it answers, particularly around how much of the promised investment will reach Wales and what role UK steel will play in major future projects.

Trostre Steel Works in Llanelli (Image: Tata Steel)

David Chadwick MP, Liberal Democrat spokesperson for Wales, said:
“It is welcome that the Government has finally acted, but this looks like a panicked move after months of delay.

“Since the blast furnaces were switched off, Welsh steel has been left on life support.”

There are also concerns about the UK’s trading position, with warnings that being outside key European arrangements could leave exporters at a disadvantage in one of their biggest markets.

Industry voices have struck a similarly measured tone — welcoming steps to tackle cheap imports while warning that deeper issues remain unresolved.

Unite, which represents many steelworkers across Wales, says the new tariff regime is a positive step, but argues the industry needs a clearer long-term direction.

Sharon Graham, General Secretary of Unite, said:
“Unite welcomes the strengthening of the UK’s tariff regime to prevent the dumping of cheap foreign steel onto the domestic market.

“But this last minute situation is just another reminder that the reactive approach to UK steel that sees it lurch from crisis to crisis needs to be overhauled.”

One of the biggest sticking points is the industry’s shift towards electric arc furnaces — a cleaner form of steelmaking that relies heavily on recycled materials.

While central to the Government’s net zero ambitions, unions have warned that relying too heavily on this approach could limit the UK’s ability to produce certain types of steel.

The hot mill at Tata Steel’s Port Talbot steelworks. (Image: Tata Steel)

Peter Hughes, Unite regional secretary, said:
“The government must also back the production of virgin green steel as we can’t simply rely on electric arc furnaces to produce all the steel we need.”

Alongside the strategy, ministers have also unveiled a new funding stream aimed at helping areas like Port Talbot adapt to the changes.

The Economic Growth & Investment Fund will offer grants of up to £1.5 million to businesses across Neath Port Talbot, Swansea and Bridgend, targeting sectors such as advanced manufacturing, green energy and digital industries.

Local leaders say it could help soften the economic impact of the transition — if it delivers.

Neath Port Talbot Council leader Cllr Steve Hunt looks out across Port Talbot Steelworks from a hillside vantage point, reflecting on the town’s industrial past and future.
(Image: Neath Port Talbot Council)

Cllr Steve Hunt, Leader of Neath Port Talbot Council, said:
“This fund provides an important opportunity to support businesses that are ready to invest, grow and create new jobs across the region.”

For now, the strategy marks a significant moment for Welsh steel — but not a settled one.

With major changes already under way and more still to come, the focus is quickly shifting from what has been promised to what will actually be delivered.

And for communities across South West Wales, that will ultimately be the measure that matters most.

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PORT TALBOT: Government vows to “do whatever it takes” to protect steel jobs — but critics warn over end of traditional steelmaking

A major new Steel Strategy has been unveiled during a visit to Port Talbot, with ministers promising tougher trade rules, billions in investment and a push to increase the amount of steel made in Britain.

At the centre of the plan is a target for 50% of all steel used in the UK to be made domestically — up from around 30% — with the Government saying Welsh producers are expected to play a major role.

That includes Tata Steel operations in Port Talbot, Llanelli, Shotton and Newport, as well as 7Steel in Cardiff.

The UK Government says it will also crack down on cheap imports.

From July, steel import quotas would be cut by 60%, with anything above those limits facing a 50% tariff.

Ministers argue the move will stop British steel being undercut — a long-standing complaint from workers and industry leaders in South Wales.

But the strategy has already sparked debate about what kind of steel industry the UK is actually protecting.

Massive ladles and overhead cranes inside Port Talbot steelworks, as Tata prepares the site for Electric Arc Furnace installation. (Credit: Tata Steel)

While ministers are backing domestic production, the plans also confirm a continued shift away from traditional blast furnaces towards electric arc furnaces, like the one being built in Port Talbot.

These use recycled scrap metal rather than raw materials — a move the Government says is key to cutting emissions and modernising the industry.

However, critics warn that transition could come at a cost.

They argue electric arc furnaces cannot always produce the same specialist grades of steel needed for defence and major infrastructure, raising concerns about long-term capability.

There are also fears the UK could become more reliant on imported materials — even as ministers move to restrict finished steel imports.

Peter Kyle, Business and Trade Secretary, said steelmaking was “vital” to the UK’s future.

He said: “Making steel in the UK is vital for national security, critical infrastructure and the wider economy.

“With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation.”

The Government says the strategy is backed by major investment, including £5.8 billion through the National Wealth Fund for priority industries such as steel.

That builds on more than £600 million already committed to Port Talbot, alongside plans to unlock up to £2.5 billion in further funding during this Parliament.

Jo Stevens, Secretary of State for Wales, said the plans showed ministers were standing firmly behind Welsh industry.

She said: “The UK Government is standing up for Welsh steelmaking and showing that we will do whatever it takes to boost domestic steel production and protect the thousands of steelmaking jobs in our communities.

“Welsh steel is expected to account for half of future UK steelmaking… Welsh steelmaking now has a secure and bright future.”

The strategy also includes measures to lower energy costs, prioritise UK-made steel in public projects and strengthen links with sectors like offshore wind, defence and infrastructure.

A new working group will also look at securing long-term supplies of scrap metal — a key part of the shift towards electric arc production.

The move comes after years of uncertainty for the industry, with global competition, rising costs and the transition to greener production putting pressure on steelmaking communities across South Wales.

Ministers insist imports will still play a role, but say the new rules are designed to strike a balance between protecting domestic producers and maintaining supply.

However, with the industry undergoing one of its biggest transformations in decades, questions remain over whether the strategy will truly secure the long-term future of steelmaking in Wales — or simply reshape it.

Related stories from Swansea Bay News

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‘Green power’ boost for Port Talbot as council green-lights major substation expansion

Neath Port Talbot Council has unanimously approved the major application from National Grid to extend the Margam 275kV substation, located just off Harbour Way.

The project is being hailed as a “key” development that will provide the essential power needed for Tata Steel’s new £1.25 billion electric arc furnace. It follows the appointment of Sir Robert McAlpine as the main contractor for the site’s decarbonisation.

This latest approval comes as Port Talbot motorists already face up to 12 months of roadworks while the wider underground electricity network is upgraded to support the transition.

Council bosses have confirmed that the extended site will connect via underground cables to a separate substation within the Tata Steelworks, feeding the new “green” furnace. Work has already begun on the furnace project, which aims to replace the traditional blast furnaces.

The works at the Margam site will include the construction of a new gas-insulated switchgear hall and a modern control building, replacing older facilities.

Planning officers have confirmed that the project also includes significant upgrades to site lighting, CCTV, and internal access roads, along with a new flood defence wall.

Cllr Rob Jones, representing Margam and Taibach, has described the extension as a “key project” that is essential for the survival of the local industry.

“Without this substation extension taking place… the whole future of steelmaking in Port Talbot and the county borough is at serious risk,” Cllr Jones has warned.

The council has confirmed that the approval is subject to a legal agreement to maintain an off-site ecological management area for the next 30 years to protect local wildlife.

While the substation does not directly supply residential homes in Margam, its role in supporting the major infrastructure upgrade is seen as critical for the region’s economic future.

The move marks another significant milestone for the electric arc furnace project, which was first approved by Neath Port Talbot Council in February 2025. The transition follows the dramatic closure of the Morfa Coke Plant and the blast furnaces, which saw thousands of jobs put at risk. Despite the £500m UK Government funding to support the move, the community continues to show resilience amid the transition.

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Inside the giant Port Talbot steelworks overhaul as Tata clears the way for new Electric Arc Furnace

The video, posted on Tata’s Facebook page, takes viewers back inside the vast BOS Plant — once the beating heart of blast furnace steelmaking — where crews are tearing out decades‑old infrastructure to make way for the new low‑carbon process.

The update shows huge sections of the former hot metal and charging bays stripped back to bare concrete, with legacy equipment, weighing stations, diesel points and even the giant charging cranes now being dismantled. The cavernous building, once filled with molten iron and the roar of converters, is described as “a cathedral” now reduced to a shell as enabling works accelerate.

Project engineers explain that the cleared space will become the EAF shell workshop, where the furnace’s massive components will be assembled and maintained. At the south end of the plant, contractors Sir Robert McAlpine are preparing the installation zone for the furnace itself — a transformation that involves digging out old pits, levelling entire bays and installing new piling across the site.

Tata says the work is “laying the foundations for a new, low‑CO₂ steelmaking process” and marks the next chapter of UK steelmaking. The company insists the EAF will secure the long‑term future of the site, even as thousands of traditional steelmaking jobs disappear.

Demolition and site clearance underway at Port Talbot steelworks, making way for Tata’s new low-carbon steelmaking process. (Credit: Tata Steel)

A year of upheaval for steelworkers

Over the past year, Swansea Bay News has followed every twist in Port Talbot’s steel saga. What began with warnings of weak demand soon spiralled into a series of hammer blows for workers — from Christmas shutdowns that slashed pay packets to the announcement that 2,800 jobs were at risk as Tata confirmed its plan to close the blast furnaces.

The uncertainty has fuelled political rows in Cardiff and Westminster, with unions accusing Tata of refusing to wait for Labour’s promised investment and MPs warning of a “betrayal” of steel communities. EU tariffs, global market pressures and soaring costs have only deepened the crisis.

At the same time, the company has pressed ahead with its £1.25bn green transition, signing contracts for new technology, appointing Sir Robert McAlpine to lead the decarbonisation build, and beginning early works on the Electric Arc Furnace. Government funding has been announced, retraining schemes launched, and start‑up grants rolled out to help families prepare for life after steel.

Communities have shown resilience — from welding academies retraining former workers to local leaders fighting to protect jobs — but the financial strain on households has been impossible to ignore. And as demolition crews move through the plant, the physical dismantling of the old steelworks has become a stark symbol of the upheaval facing the town.

Inside the BOS Plant: a steel cathedral stripped bare

In the new video, engineers walk viewers through the vast BOS Plant, pointing out where the old weighing stations, fume hoods, diesel points and hot metal pits once stood. Much of the floor has been ripped up, leaving gaping holes where equipment sat for decades.

The removal of the south charging crane — a job so large it requires opening the roof and bringing in a giant external crane — is described as a “huge undertaking”. The north crane was once installed the same way.

Long‑serving staff speak openly about the emotional toll of dismantling equipment they helped install 35 years ago, even as they acknowledge the need to move forward.

South end transformation: where the new furnace will rise

The video then moves to the south end of the plant, now controlled by Sir Robert McAlpine. The area is almost unrecognisable. Entire bays have been stripped out, old scrap‑handling areas flattened, and deep pits dug out to prepare for the new furnace and ladle metallurgy stations.

Engineers explain how the EAF will sit in the south‑west corner, with new transfer tracks linking the furnace, the ladle furnaces and the caster. Massive piling work will be needed across the entire building to support the new equipment.

Even in its stripped‑back state, the layout of the future steelmaking process is beginning to emerge.

A new era — but at a heavy cost

Tata says the EAF will cut emissions dramatically and modernise the plant, but unions warn the shift will slash jobs and leave the UK dependent on imported steel scrap. The company has already confirmed that large parts of the works will close permanently this year.

Despite the upheaval, Tata insists progress is “well underway behind the scenes” and promises more updates as the project moves forward.

The next major milestone will be the arrival of the EAF shell and equipment — a moment that will symbolise the end of one era of Welsh steelmaking and the beginning of another.

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Tata Steel begins new project at Port Talbot in £1.25bn green plan

The company says the state‑of‑the‑art facility will replace ageing equipment and prepare hot rolled steel for downstream processes. The line cleans and treats steel before it is cold rolled and coated, supplying other Tata operations at Trostre, Llanwern and Shotton.

A turning point for Tata’s operations

Mills Programme Manager Andrew McGregor called the groundbreaking a turning point.

“This is a fundamental asset that is required for us to have a sustainable UK business going forward,” he said.

“Our current assets are at the end of their operational life, and without this replacement pickle line, we wouldn’t be able to process many of the steels required for our downstream businesses and directly for our customers.”

McGregor also praised the project team for months of preparatory work, from diverting cables to clearing the bay, which has allowed demolition crews to move in.

Tata Steel executives, including Pramod Agrawal and Rajesh Nair, inspect the cleared bay inside Port Talbot steelworks where the new pickle line will be built.(Image: Tata Steel)

One year after the blast furnaces fell silent

The investment comes less than a year after the closure of Port Talbot’s blast furnaces, which brought significant job losses and uncertainty for the town. Tata insists the pickle line is a sign of renewal, but unions and community leaders have warned that the transition to electric arc furnace production will still mean a smaller workforce.

The new pickle line is scheduled to be in place by 2026, ahead of the planned commissioning of a 3.2 million‑tonne electric arc furnace in 2027/28. Tata says the EAF will melt UK‑sourced scrap steel and form the centrepiece of its decarbonisation strategy.

Project leaders and contractors gather in hi‑vis at Port Talbot steelworks as demolition begins for the new pickle line, alongside heavy machinery on site.(Image: Tata Steel)

Local firms in the frame

Construction of the pickle line is being led by Sir Robert McAlpine, with regional firms including Darlow Lloyd & Sons, Andrew Scott Ltd and Systems Group also involved.

At the official ceremony, Tata Steel board member Pramod Agrawal cut the ribbon alongside senior executives.

Pramod Agrawal, Tata Steel board member, during his visit to Port Talbot to mark the start of the new pickle line project.(Image: Tata Steel)

Optimism tempered by caution

For Port Talbot, the start of work on the pickle line is another reminder of the site’s changing role. Neath Port Talbot Council leader Steve Hunt recently described the past year as “seismic” for the town, but said projects such as the pickle line and the Celtic Freeport offered reasons for optimism.

Campaigners, however, remain cautious. They argue that while new investment is welcome, the loss of traditional steelmaking has left deep scars and that promises of a “green future” must be matched by secure jobs and long‑term commitments.

Related articles

• One year on: Council leader hails resilience after Port Talbot blast furnace closure

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• Tata Steel signs contract for green steelmaking technology

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• Port Talbot communities show resilience amid Tata Steel transition, but financial pressures loom

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Powering change: National Grid sets out plans to electrify green steel in Port Talbot

National Grid has announced plans for a major electricity infrastructure upgrade in Port Talbot to power Tata Steel’s new electric arc furnace (EAF) and strengthen energy capacity across South Wales.

The Margam Connection Project includes the expansion of the existing Margam substation with a new 275kV gas-insulated substation (GIS), and a second GIS facility at the Tata Steel site connected via underground cable. Both sites will be built using SF6-free switchgear technology, reducing the project’s environmental footprint.

A public information event will take place on Thursday 17 July, from 2pm to 8pm, at Margam Community Centre, Bertha Road, Port Talbot, ahead of a 28-day statutory pre-application consultation.

Richard Gott, project director at National Grid Electricity Transmission, said the upgrade will help deliver a cleaner, more secure energy future for South Wales. “By enabling the electrification of Tata Steel’s operations, we’re not only supporting the UK’s transition to green steel but also helping to safeguard jobs and strengthen the local economy,” he said. “We look forward to engaging with the community and hearing their views.”

Construction will be delivered in partnership with Laing O’Rourke, using pioneering technology that replaces sulphur hexafluoride (SF6)—a commonly used but potent greenhouse gas—with lower-impact alternatives.

Peter Lyons, managing director for Laing O’Rourke’s Europe hub, said the firm was proud to continue its partnership with National Grid. “This project is another fantastic example of how we’re helping to deliver cleaner and more secure energy for the UK,” he said. “Through early collaboration, we’ve worked together on the design and implementation programme, and National Grid has valued both our unique operating model and our technical expertise.”

National Grid is planning £35 billion of transmission network investment across Wales and England between 2026 and 2031 to connect clean power sources, electrify industry, and support national economic growth.

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Work begins on Port Talbot electric arc furnace as steelworks transition moves forward

Construction has begun on Tata Steel’s £1.25bn electric arc furnace (EAF) in Port Talbot, marking a major milestone in Wales’ industrial transformation—but it comes with the loss of more than 2,800 jobs and the end of traditional steelmaking in the town.

Business Secretary Jonathan Reynolds, Welsh Secretary Jo Stevens, and Tata Group Chairman Natarajan Chandrasekaran formally broke ground at the steelworks site on Monday (14 July), signalling the start of a project designed to cut carbon emissions by 90% and shift production toward recycled scrap steel.

The UK Government has committed £500 million toward the EAF, describing it as “a major win” for Welsh steelmaking that secures 5,000 jobs nationwide. The new furnace will replace the site’s two blast furnaces—shut down in September 2024—ending a century of primary steelmaking in Wales.

‘Bitter sweet’ day for steelworkers and families

The announcement has been widely described as bittersweet. While Tata and ministers hailed the start of a cleaner, greener future, union representatives and local leaders stressed the impact of the redundancies and the uncertainty still facing thousands of workers.

Assistant General Secretary Alasdair McDiarmid of Community Union 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… 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.”

Speaking ahead of the groundbreaking, First Minister Eluned Morgan said the construction phase represents “a tangible sign” of Tata’s commitment, adding that the Welsh Government is working with partners to support affected workers and promote economic resilience.

Former steelworker Graham Rowland said:

“I’ve seen good boys lose their jobs… This industry kept this town alive. It’s the heart and soul of the place. If anywhere can make that arc work, it’s Port Talbot. The knowledge, the grit, the people—it’s all here. We just need the right support.”

Related stories from Swansea Bay News

Job losses confirmed as Tata Steel sets timetable for blast furnace closures
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Port Talbot regeneration fund launched to support steelworker transition
Details funding pledged to support displaced workers and local communities.

Celtic Freeport: what it means for the local economy and green infrastructure
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EAF: cleaner steel, fewer emissions—but far fewer jobs

Tata Steel says the new furnace is essential to achieving climate targets and creating “a financially and environmentally sustainable future.” The company has reported losses of £4bn in Port Talbot since 2007.

Chairman Natarajan Chandrasekaran said:

“This is a proud day for the Tata Group, Tata Steel and for the UK. 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.”

The new furnace will be built on the site of the Basic Oxygen Steelmaking (BOS) plant and is set to be one of the largest of its kind globally, capable of producing up to three million tonnes of steel per year. Contractor Sir Robert McAlpine has been appointed to deliver the build, which will also include a new scrap processing plant.

Operations are expected to begin in late 2027. In the meantime, Port Talbot will continue to roll imported steel slabs through its hot strip mill and finishing lines.

Supporting workers through the transition

Neath Port Talbot Council and the Tata Steel / Port Talbot Transition Board have pledged over £100 million to support workers, businesses and community recovery. This includes:

• A £19.8 million Employment and Skills Fund
• A £21.2 million investment in Harbourside manufacturing and skills facilities
• A £13 million business start-up and resilience programme
• Additional community grants targeting financial hardship, mental health and career retraining

A recent survey by Public Health Wales found that 74% of local households expect to face financial pressure in the coming months, with food, energy, and housing cited as key concerns.

Council Leader Cllr Steve Hunt said:

“On behalf of the Transition Board, Neath Port Talbot Council is delivering targeted support to people and businesses both within Neath Port Talbot and further afield.”

Looking ahead

While the shift to EAF production represents a landmark shift in Welsh industry, many argue the transformation must be judged not just by its carbon savings, but by the long-term outcomes for workers, communities and supply chains.

Luke Fletcher MS, Economy spokesperson for Plaid Cymru and Senedd Member for South Wales West, said the start of construction is “welcome,” but warned that “the opportunity has been lost to safeguard over 2,000 primary steelmaking jobs.”

“Labour has promised a lot to the communities in and around Port Talbot,” he said, “it’s vital that those promises are realised now.”

Swansea Bay News will continue to follow developments across Port Talbot and the steel sector as this historic transition unfolds.

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