Tata Steel New Factory: $ 1.5 billion Electric arc oven facility to arrive at Port Talbot; British government gives 500 million pounds – Times of India

Tata Steel starts the construction of his ultramodern electric Arc Furnace (EAF) facility in Port Talbot, Wales, in July 2025, with the production expected by 2027. In its FY24-25 annual report, the company confirmed that all major approvals for the $ 1.5 billion project are now present.Supported by 500 million pounds in financing the British government, the project marks an important step in the journey from Tata Steel to low -carbon steel production. Once operational, the EAF is expected to produce 3.2 million tonnes of steel with low emissions annually and cut more than 50 million tonnes of CO₂ emissions in the coming decade.“We are now switching to decaronized and state-of-the-art EAF-based sampling by FY2027-28, supported by 500 million pounds in the British government financing,” said Tata Steel CEO & MD TV Narendran and Executive Director & CFO Koushik Chatterjee in the report.The dismantling of two aging blast furnaces in Port Talbot has already been completed and the company has shifted to a downstream -oriented model, using steel substrate from its activities in India, the Netherlands and other suppliers to serve its British customers.“We left samples through the heavy final assets at the end of the lifespan in Port Talbot and moved to a downward model with imported substrate from India, the Netherlands and other external sources,” a high officer explained.Tata Steel also looks at the most important cost rationalization and is aimed at reducing the fixed costs of 762 million pounds in FY25 to 540 million pounds in the following year. This will be achieved by optimizing input costs, electricity operations and IT modernization.Chairman N Chandrasekaran said the company is firmly on its way with its green transition. “The dismantling of two blast furnaces in Port Talbot has cleared the way for the next generation Electric Arc Furnace (EAF) project, supported by the British government,” he said.The EAF facility will also use locally available scrap, which further strengthens the switch from the company to a more sustainable and circular production model.