Issued by: Department for Business and Trade

5,000 steel jobs have been secured following the start of construction on Tata Steel's Port Talbot electric arc furnace project today.

• Business Secretary Jonathan Reynolds and Welsh Secretary Jo Stevens join Tata Group Chairman to break ground on construction of electric arc furnace that will secure thousands of jobs.

• Latest good news shows how UK’s modern Industrial Strategy is backing Welsh industry, following landmark energy support package slashing energy costs for Tata Steel and other UK steel firms.

• Industry Minister Sarah Jones to chair meeting of Steel Council together with industry leaders at 7Steel this morning to work towards finalising UK’s Steel Strategy.

5,000 jobs have been secured following the start of construction on Tata Steel’s electric arc furnace (EAF) at Port Talbot steelworks today (14 July).

Business Secretary Jonathan Reynolds will join Tata Group Chairman N. Chandrasekaran, Wales Secretary Jo Stevens and other government and company representatives to break ground on the project and start construction later today.

The construction milestone, made possible by a £500 million UK Government grant provided as part of the improved deal for Port Talbot’s transition which the Government agreed after only 10 weeks in office, is a major win for Welsh steelmaking in the run-up to the launch of government’s Steel Strategy this year.

This morning, Industry Minister Sarah Jones will chair a meeting of the Steel Council at 7Steel in Cardiff to work towards finalising the upcoming Steel Strategy – backed by up to £2.5 billion of investment – and reflect on a series of recent wins for the industry with senior leaders from across the sector, including British Steel and UK Steel.

This includes slashing energy costs for steel producers via new measures announced in the UK’s modern Industrial Strategy, strengthening the UK’s steel safeguard measures to protect the industry from spikes of foreign steel imports and bolstering the UK’s procurement rules to ensure UK-made steel is considered wherever possible for use on public construction projects.

The Government is also backing the steel sector by working closely with the US to secure the removal of 25 percent tariffs on steel and aluminium, while the UK remains the only country in the world not to pay a 50 percent tariff rate.

Business Secretary Jonathan Reynolds said:

"This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.

"This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible. Our modern Industrial Strategy has set out how we’ll back the sector even further, including by slashing energy costs for firms like Tata Steel to level the playing field, as part of our Plan for Change."

The start of construction on Tata Steel’s EAF marks a significant step forward in Port Talbot’s transition to greener steel production, and is expected to reduce the site’s carbon emissions by around 90 percent.

The success of the project – and Tata Group’s continued investment in British industry – is testament to the UK’s strong and valued relationship with India, following the trade deal the Government agreed with India in May which will add billions to the UK economy going forward.

During the groundbreaking event to mark the start of construction, the Business Secretary will tour the site of the new EAF, meet with senior management at Tata Steel and take part in a demonstration with a virtual reality headset to see how the new EAF will look when operational.

Tata Group Chairman Mr Chandrasekaran said:

"This is a proud 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."

Secretary of State for Wales Jo Stevens said:

"The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community. Our Steel Strategy will also deliver up to £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.

"The construction of Tata’ s new furnace realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future."

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