Tata Steel From Furnace to Future
On the 15th October, IoD Wales members were invited into Tata Steel UK to hear of the future plans Port Talbot site. Members heard from Huw Morgan, Director of Decarbonisation, with a presentation which incorporated the history of the Tata group and the timeline for future plans as the steelwork’s transitions to an electric arc furnace.
Following the presentation there was an opportunity to hear from a panel of distinguished guests that included Tata Steel UK CEO Rajesh Nair, Huw Morgan, Director of Decarbonisation, Karen Jones, CEO of Neath Port Talbot Council, Sarah Williams-Gardner Chair Fintech Wales and Transition Board member, and Luciana Ciubotariu, CEO Celtic Freeport.
IoD Members heard about the scale of Tata group and the industries that use Tata Steel’s products, including automotive, Construction, Packaging, Engineering and Energy Transition. We see and use everyday objects which have been made using Port Talbot-made steel including tin cans, the world’s tallest building in Dubai and IKEA buildings with the famous IKEA blue colour. Tata Steel UK sells approx. 3 million tonnes of steel a year across the various product ranges and invests in significant R&D activity. For the new electric arc furnace – ordered by the company just a few days after this presentation – 75% of raw materials will come from the UK in the form of scrap. CO2 emissions from the site will reduce by 90% and 320 tonnes of steel will be produced every 42 minutes in the new furnace.
It’s not all business and each year Tata Steel invests into local communities through activities that embrace health and wellbeing, environmental, education and learning through local clubs and organisations. Some of the local organisations in Port Talbot and the surrounding areas that have been supported include, Tata Kids of Steel, Aberavon Wizards League, surf School Wales and the Richard Burton 10K run.
The need for this industry to evolve is not only to transition towards a greener future, but also to match the requirements of its supply chains, supporting it’s customers to reach their net- zero targets.
With the two ageing blast furnaces now closed, the project to make way for the electric arc furnace can begin. Construction work to prepare for the new furnace is due to start in summer 2025 with the first ‘green’ steel being produced in 2027/ 28.
The transition to a greener future for any organisation is difficult and Tata Steel is sensitive to the impact of changes to local people, supply chains and communities, especially with the impact of job losses. Tata Steel has taken a proactive approach and is respectfully working with those impacted by the changes and have committed £130 m to support those affected. Working alongside the UK and Welsh governments, Tata Steel has committed a further £20m to the Transition Board to support those affected.
The Celtic Freeport brings a unique opportunity for the region, that will support low-carbon industry. Attracting much- needed investment into the region the freeport will require highly- skilled workers for well-paid roles. Neath Port Talbot is perfectly positioned to support this vision of the freeport with it’s links to road, sea and rail access.
It goes without saying the future for Port Talbot will be a different one to what we are used to, but one that promises to be exciting and full of possibilities. We are looking forward to hear of the progress and visiting again in the future with IoD members to discuss progress.
The Tata group is one of India’s most valuable brands. Established in 1868, the organisation operates in over 100 countries across six continents. Founded by Jamsetji Tata, the organisation was originally in commerce before diversifying into other sectors.
The first steelworks at Port Talbot was established in 1902, and became an iconic imposing landmark for those travelling between West and East Wales. The steelworks was part of the acquisition of Corus by Tata Steel in 2007
The site in Port Talbot has seen significant investment over the years and works with thousands of businesses – customers and suppliers – in the UK and hundreds in Wales.
If you would like to get involved with the Transition Board and pledge your support for the workers of Tata Steel, please contact; Transition Board statement | Tata Steel UK