GREEN STEEL: Tata warns new UK import rules leave Port Talbot exposed

Tata Steel has warned that new UK rules meant to curb cheap steel imports do not go far enough to protect British producers, raising fresh concerns over the future of its Port Talbot operations.

The company was responding to the UK Government’s final steel import quota framework, published today, which takes effect from 1 July.

The measures are intended to shield UK steelmakers from a global glut of cheap steel by limiting how much can be imported tariff-free, with higher tariffs on imports above those limits.

But Tata Steel UK chief executive Rajesh Nair said the final quotas still allowed too much overseas steel into strategically important parts of the UK market.

“We do not believe the final quota levels published today reflect UK market conditions or the pressures facing the domestic steel industry,” he said.

Tata Steel UK chief executive Rajesh Nair. (Image: Tata Steel UK)

He said several categories of steel would still face significant import competition, “exposing domestic production and supply chains to continued pressure.”

Mr Nair said the company was “disappointed by elements of the final framework” and “very concerned about the implications for the long-term competitiveness, sustainability, growth and future investment outlook for the UK steel sector.”

He said that if the government wanted UK producers to supply half of the country’s steel demand, the quota arrangements would need to offer stronger support, and called on ministers to reconsider parts of the framework.

The trade body UK Steel was also critical. Its director of trade and economics, Peter Brennan, said the new quota had in some areas “made the situation worse for UK producers,” singling out galvanised steel, where he said the allocation for Vietnam had been more than tripled.

He said there had been “an opportunity missed in key areas” that would leave parts of the UK supply chain exposed to heavily subsidised imports.

The government has defended the measures. From 1 July, tariff-free steel imports will be cut and tariffs on imports above the new limits will rise, in a framework ministers say is designed to protect UK steelmaking while still allowing manufacturers to source specialist steels not made in Britain.

It has exempted 11 categories of steel where there is no UK alternative, and has said it wants domestic producers to be able to meet up to half of UK demand.

The government has also pointed to the support it has already put into the industry, including £500m towards the new electric arc furnace being built at Port Talbot.

Steelworks at Port Talbot

The intervention matters for Wales, where Tata is part-way through a major transformation of the Port Talbot works.

The company closed its blast furnaces in 2024, with the loss of around 2,000 jobs, and is replacing them with a new electric arc furnace expected to produce lower-carbon “green” steel.

Only yesterday, Tata was showing off a year of transformation as the giant new furnace neared completion.

But the transition has not been smooth. Earlier this month, the firm warned the project could be delayed by up to eight months because of a hold-up connecting it to the electricity grid.

Tata said it recognised the work the government had put into the framework during what it called an exceptionally challenging period for global steel, but urged ministers to keep working with the industry and to reconsider parts of the final arrangements.

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GREEN STEEL: Port Talbot’s giant new furnace is built and on its way — as Tata shows off a year of transformation

The centrepiece of Tata Steel’s £1.25bn transformation of Port Talbot — its giant new electric arc furnace — has been built and is now making its way to south Wales.

In a project update, the company said the main components of the furnace had been fabricated and were beginning their journey to Port Talbot from sites around the world.

The furnace has been designed and made by the Italian metals technology firm Tenova, and is billed as one of the largest of its kind ever built, with a main shell measuring more than nine metres across.

Once running, it will be capable of producing 3.2 million tonnes of steel a year, melting scrap using electricity rather than the coal-fired blast furnaces that defined the site for generations.

The update came in the latest instalment of Tata’s own video series charting the rebuild, in which a presenter and project director tour the site a year on from when much of it was still open ground.

Excavators at work on the transformed Port Talbot site, where open ground is being prepared for the new plant. Image: Tata Steel

Tata’s project director said the big parts were ready to ship, with roughly a two-month sailing ahead of them before they arrive to be offloaded.

The components are being delivered in 11 separate lots, spread out over the coming year, the company said.

According to Tata, the wider project is “on plan” and broadly on time, with the director describing the progress over the past year as a “morale booster” for the workforce.

Molten metal at Port Talbot — the electric arc furnace will melt scrap using electricity rather than coal. Image: Tata Steel

Around 1,200 people are expected to be working on the site at peak, across civil, mechanical, electrical and piping work.

The video showed the scale of the groundworks — including a former cooling lagoon partly filled with some 220,000 tonnes of stone, and a separate area cleared of around 400,000 tonnes of material.

The cooling water lagoon beside the steelworks, part of which is being filled in as work progresses. Image: Tata Steel

The footage also showed work on the site’s future scrap yard, which will handle around 70,000 tonnes of scrap a week to feed the new furnace

An aerial view of the site earmarked for the scrap metal yard, which will feed the new electric arc furnace. Image: Tata Steel

Nearby, contractors for National Grid are piling the ground for a 275,000-volt substation that will power the furnace, on land the grid operator now leases from Tata.

The furnace site itself was where the UK’s Business and Trade Secretary, Peter Kyle, launched the government’s Steel Strategy in March, and where a groundbreaking ceremony was held in July last year.

Tata’s confident tone follows a turbulent few weeks for the project, however.

Earlier this month, Swansea Bay News reported that the furnace could be delayed by up to eight months over a hold-up in its power connection, prompting cross-party calls for answers and a row over who knew what, and when.

An earlier shipment of furnace parts had also been pushed back by several weeks, with reports linking the delay to rising shipping costs amid tensions in the Middle East.

Cleared ground inside the works where legacy equipment has been stripped out. Image: Tata Steel

The switch to electric arc steelmaking, backed by £500m of UK Government funding, is central to Tata’s plan to cut emissions at Port Talbot — but it came at the cost of thousands of jobs when the blast furnaces closed.

A full video tour of the site is available on Tata Steel’s YouTube channel.

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GREEN STEEL DELAY: Cross-party calls for answers over Port Talbot furnace setback as politicians press Tata and National Grid

The delay to Port Talbot’s new electric arc furnace has prompted a cross-party call for answers at the Senedd, with members pressing both Tata Steel and the National Grid.

The £1.25bn furnace, central to the future of steelmaking in the town, could be held up by up to eight months because of delays to the power infrastructure the National Grid is building to run it.

Elyn Stephens, Plaid Cymru MS for Afan Ogwr Rhondda, said the delay was “another blow to the communities I represent”.

She said it meant a longer wait for much-needed jobs and economic regeneration, and created further uncertainty for local residents.

“I have contacted Tata directly this afternoon and will be making further representations tomorrow,” she said.

“People in Port Talbot deserve honesty and transparency about when this development is expected to be delivered.”

Huw Irranca-Davies, Labour MS for Afan Ogwr Rhondda, said the news — coming on top of the recent fire at the works — had caused understandable concern for the workforce, unions and the wider supply chain across Wales.

He said he had already been in contact with Tata to seek assurances that the transition to electric steelmaking was proceeding and that the jobs relying on it were protected.

Irranca-Davies said he understood Tata might issue a further statement in the coming days, which he hoped would offer reassurance that the difficulties would be overcome.

He added that he had accepted a place alongside other local members on the Tata Transition Board, and had asked the UK government and the new Welsh Government — including the Cabinet Minister for Enterprise, Adam Price — to support the move to electric arc production.

The delay also drew comment from the Welsh Conservatives. Janet Finch-Saunders, the party’s shadow minister for enterprise, connectivity and energy, called the situation “deeply concerning”.

She said the furnace was “a vital investment for the future of Welsh steelmaking, jobs and economic growth”, and that the National Grid and the UK government “must urgently work together to resolve these connectivity issues and ensure this strategically important project is delivered without further delay”.

The interventions follow a similar call from David Rees, the former Aberavon MS who chaired the Senedd’s cross-party group on steel, who said the National Grid should face penalties if the connection slipped further.

The electric arc furnace is designed to make lower-carbon “green steel” by melting scrap rather than burning coal, replacing the blast furnaces that closed in 2024 with the loss of around 2,000 jobs — part of a wider £1.25bn transformation of the works.

It relies on a major grid upgrade — including a major substation expansion approved by the council earlier this year — which the National Grid has said is running late because of ground conditions and planning issues.

Tata has said the project timeline “continues to evolve” and that it is working to deliver the furnace “safely and as quickly as possible”.

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GREEN STEEL DELAY: Former Aberavon MS says National Grid should face penalties over delayed electric furnace connection

The delay to Port Talbot’s new electric arc furnace — caused by the National Grid’s own infrastructure works running behind — is worse than feared, according to the former politician who spent years scrutinising the project.

David Rees, the former Labour MS for Aberavon and a long-standing chair of the Senedd’s cross-party group on steel, was responding to Tata Steel’s warning that the £1.25bn furnace could be held up by up to eight months, after the National Grid told the company its connection project was running late.

The grid operator needs to build two new substations and lay miles of underground cabling to power the furnace, and has blamed ground conditions and planning issues for the hold-up.

His comments relate to that grid connection — a separate issue from the recent fire at the site’s cold mill.

Rees said he had questioned the grid connection from the very start of the project.

“One of the questions I asked Tata at the beginning of the EAF project was about the grid connection, and were they sure that it would be ready by late 2027,” he said.

He said he had been told repeatedly that the National Grid had given assurances the work would be delivered on time.

“It’s a question I continued to ask every time we met to discuss the project, and every time I received the same assurances,” he said.

In recent months, he said, workers had begun raising concerns that the timeline was slipping.

“I had hoped it would only be a couple of months at worst, and that we would see the EAF operating in spring 2028,” he said.

“It now appears that that was too hopeful, and it is now moving into autumn 2028 before the EAF is operational.”

That timeline goes further than Tata’s own public position, which put the likely delay at six to eight months.

Rees called on the UK and Welsh governments to commit to getting the furnace running as quickly as possible and to minimise any further delay.

He said they “must get National Grid to guarantee this, and pay penalties if they fail to do so”.

The electric arc furnace is central to the future of steelmaking in Port Talbot, replacing the blast furnaces that closed in 2024 with the loss of around 2,000 jobs.

It is designed to make lower-carbon “green steel” by melting scrap in an electric furnace rather than burning coal — but it needs a major grid upgrade to power it.

“We all want to see steel once again being produced in Port Talbot, and it is imperative that this is done as soon as possible,” Rees said.

“Our town and workers deserve nothing less.”

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GREEN STEEL: Port Talbot’s £1.25bn furnace could be delayed by up to eight months over power hold-up

Tata Steel’s switch to “green steel” at Port Talbot could be delayed by up to eight months, the company has warned — because of problems connecting its new furnace to the power network.

The £1.25bn electric arc furnace, which will make lower-carbon steel by melting scrap rather than burning coal, was due to be running by the end of 2027 — replacing the blast furnaces that closed two years ago with the loss of around 2,000 jobs.

But the project now hinges on a major upgrade to the electricity network — and that work has hit problems.

The new furnace will melt scrap steel using huge amounts of electricity, rather than the coal-fired blast furnaces it replaces, and securing enough power is critical to the switch.

Tata is working with the National Grid to build the infrastructure needed to feed it.

Port Talbot from above with the town’s steelworks in the distance (Image: Neath Port Talbot Council)

The warning came from the company’s executive director and chief financial officer, Koushik Chatterjee, during a conference call with investors last month.

Chatterjee said major demolition work on the site had been completed and the project was progressing, but that “securing access to high power electricity is critical for our planned transition”.

He said the National Grid had “formally alerted us that their connectivity project is delayed”, and that Tata was in talks with the grid operator and the UK government to resolve the issue.

Asked how long the hold-up might be, he said: “Somewhat between, say, six months to eight months will certainly be there, maybe higher, after we have built the plant.”

In a statement, Tata said timelines for major projects “continue to evolve” as engineering, construction and infrastructure work progresses.

The company said it was discussing “potential adjustments to the commissioning timetable” with its partners to deliver the project “safely and as quickly as possible”.

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

The scale of the grid work is considerable. The National Grid said it involved building two new substations, installing transformers and laying 2km of underground cables.

It said issues with ground conditions, along with environmental and planning considerations, had contributed to the delays, but that “good progress” was being made.

Much of that work has already been visible across Port Talbot. Earlier this year the council approved a major expansion of a substation described as “nationally important” to the steel project.

Motorists have also faced up to a year of roadworks as the underground electricity network is upgraded to carry the extra load.

The delay is the latest twist in a turbulent period for the works, which is partway through a £1.25bn transformation that has already cost thousands of jobs.

The setback comes during a difficult spell for the works. Days earlier, a major fire tore through a processing line at the site, leaving part of a building collapsed.

The company said the blaze had forced its Hot Strip Mill offline, with a restart planned for the middle of next week, and that it was routing some work through its Llanwern site to keep supplies flowing to customers.

Tata says the electric arc furnace remains central to its plans for steelmaking in Port Talbot — but for now, the question is when, not if, it will fire up.

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PORT TALBOT STEEL GETS NEW ROLE IN GREEN ENERGY FUTURE: Welsh consortium launches research into wind turbine towers made with local steel

Researchers backed by Welsh Government funding have launched a project that could see the steel being made in Port Talbot’s new electric arc furnace used to build the next generation of wind turbine towers — creating a direct link between the town’s industrial future and Wales’s clean energy ambitions.

The consortium, led by the Offshore Renewable Energy Catapult, includes Tata Steel UK, energy companies RWE and Bute Energy, and engineering firms Hutchinson Engineering and Ledwood. It has been awarded £174,000 through the Welsh Government’s SMART Flexible Innovation Support scheme to research a new approach to turbine tower design using thin strip, coil-based steel produced in low-emission electric arc furnaces.

The significance for Port Talbot is immediate. Tata Steel is currently in the middle of a £1.25 billion transition from blast furnace steelmaking to electric arc furnace production — a transformation that has already cost thousands of jobs at the steelworks but which the company says will deliver a cleaner, more competitive future. As Swansea Bay News has reported extensively, construction of the new furnace is now under way, with commissioning expected by the end of 2027 or early 2028.

The type of steel at the heart of this new research project — thin strip, coil-based product made in an electric arc furnace — is precisely the kind of output that Port Talbot’s new operation will be able to produce. That steel is also the feedstock that flows downstream to operations including the Trostre tinplate works in Llanelli, which produces coated steel for food and drink packaging and which is directly dependent on the Port Talbot supply chain.

The turbine tower research aims to solve a specific problem in the UK’s renewable energy sector. Most wind turbine towers currently built in Britain rely on thick steel plate imported from overseas — creating a bottleneck in the supply chain and adding cost and carbon to projects. The consortium wants to develop a design that replaces imported thick plate with domestically produced thin strip coil steel, using engineering techniques borrowed from the marine and aerospace industries to create structures that are lighter, stronger and cheaper.

Crucially, the proposed design would also be dismantlable and recyclable — meaning that when turbines reach the end of their working life, the steel could be melted down and reused. Bute Energy’s Catryn Newton described it as a circular economy vision for Welsh steel: end-of-life turbines helping to power homes and industry for decades could eventually be recycled through the electric arc furnace and transformed into the towers of the next generation.

“If we get this right, we could see end of life turbines that have been helping to power homes and industry across Wales for the past 30 years, recycled and sent to the newer electric arc furnaces,” she said. “The work of this group is exploring whether that scrap metal can be transformed into a material that could be used in the next generation turbine towers, helping to power Wales’ clean power future.”

Computer-generated perspective of how Tata Steel at Port Talbot will look once the new EAF (electric arc furnace) is fully completed.
(Image: Tata Steel)

Tata Steel’s Sumitesh Das said the company was excited to be involved in research that could position Wales as a global hub for this kind of innovation. “As Tata Steel UK transitions to electric arc furnace steelmaking, our ambition is to ensure domestic supply chains capitalise on the growth of clean energy and help drive economic growth in the UK,” he said.

The project comes as Port Talbot’s industrial community continues to navigate the painful consequences of the blast furnace closures, which took around 2,800 jobs with them. The hope — articulated by politicians, unions and the company itself — has been that the new electric arc furnace would not only preserve steelmaking in the town but open doors to new markets and new applications for Welsh steel. This wind tower project is one of the first concrete examples of what that future might look like in practice.

Aberafan Maesteg MP Stephen Kinnock welcomed the research, saying it was essential that British and Welsh steel played a central role in the clean energy transition. “This research demonstrates how Wales and the UK can remain at the forefront of the transition to renewable energy,” he said. “By decreasing reliance on imported steel we can bolster energy security, create economic growth, secure regional jobs, and support offshore wind deployment in the Celtic Sea and beyond.”

Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, said the investment reflected the Welsh Government’s commitment to building a greener economy. She pointed to the potential for creating high-value jobs and strengthening supply chains as Welsh industry pivots towards clean energy.

The Celtic Sea, off the coast of Pembrokeshire and west Wales, is one of the most promising sites for floating offshore wind development in the UK. Port Talbot — with its established steel expertise, its port infrastructure and its proximity to that potential wind farm zone — has long been identified as a natural base for offshore wind supply chain activity. As Swansea Bay News has reported, a £64 million wind energy hub plan for Port Talbot has already been put forward with the promise of up to 5,000 jobs.

The first phase of the new research project will focus specifically on onshore turbine tower design and the commercial case for using locally produced coil steel. If the concept proves viable, the researchers say it could be extended to offshore and floating wind applications in later phases — potentially unlocking a significant new market for the steel being made in Port Talbot and processed downstream at Trostre.

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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.

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Government criticised over treatment of steelworkers
Unions and politicians condemn support offered during the transition.

Dramatic video shows final push at Morfa coke plant
Striking footage captures the last days before shutdown.

#BritishIndustry #Economy #electricArcFurnace #featured #industry #JoStevens #jobs #Llanelli #manufacturing #netZero #PeterKyle #PortTalbot #PortTalbotSteelworks #southWales #steel #steelIndustry #steelStrategy #steelworks #TataSteel #TataSteelworks #Trostre #TrostreSteelworks #UKGovernment #WelshSteel

‘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.

#Business #electricArcFurnace #greenEnergy #Infrastructure #Margam #NationalGrid #NeathPortTalbotCouncil #PortTalbot #roadworks #TataSteel

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.

More Tata Steel Coverage

Work begins on Port Talbot Electric Arc Furnace
Early construction marks the start of the site’s green steel transition.

2,800 jobs at risk as Tata announces plans
Workers brace for major changes as blast furnaces face closure.

Tata confirms closure of part of Port Talbot steelworks
Sections of the plant shut down as transition accelerates.

Steelworkers face ‘catastrophic’ Christmas pay cuts
Extended shutdown leaves families struggling over the festive period.

Port Talbot communities show resilience amid transition
Local support grows as financial pressures mount on households.

Tata signs contract for green steelmaking technology
New equipment deal paves the way for low‑carbon production.

Union prepares to escalate industrial action
Anger grows as Tata pushes ahead without waiting for government support.

#BOSPlant #EAFShellWorkshop #electricArcFurnace #greenSteel #industry #lowCOSteelmaking #PortTalbot #PortTalbotSteelworks #TataSteel #TataSteelworks