Tata Steel has a plan to commence construction of its new low-carbon electric arc furnace (EAF) steelmaking facility in the UK in July this year, with operations scheduled for 2027.

Located in Port Talbot, the new plant will utilize recycled scrap to reduce on-site carbon emissions by up to 90%.

The EAF is designed to produce 3.2 million tons of low-emission steel annually and is projected to cut more than 50 million tons of CO2 emissions in the next decade.

This transition is coupled with a focus on cost rationalization, aiming to reduce fixed costs from £762 million in FY25 to £540 million next year.