Steel, the prime component in construction, automotive, infrastructure and renewables, is a fundamental industry throughout South West Wales. Unite, the steel workers Union themselves, have said “there is no growth without steel”.2 Neath Port Talbot, just ten minutes on the motorway from Parc Felindre is the largest steel manufacturing town in the United Kingdom and one of the largest in the world.
With a long history of steel production, the steelworks continues to operate with new technologies and remains a significant employer in the area. It has recently been granted a big boost to its steel manufacturing heritage.1
Port Talbot steel works
Port Talbot docks harbourside steelworks site
Tata Steel invest in New electric arc furnace
Tata Steel's Port Talbot plant is now transitioning to greener steel production with a new electric arc furnace, which requires fewer workers to run, expected to be in place from 2027.3
The proposal between Tata steel and the UK government is the largest investment in the UK Steel Industry for decades, and lays the decarbonisation pathway towards globally competitive and sustainable steel making in Port Talbot, UK.
Tata Steel moves to greener steel-making at its Port Talbot plant with its £1.25 billion investment in the new Electric Arc Furnace. The development could begin by the summer of 2025.
With the support of the UK Government and dedicated efforts of the employees of Tata Steel UK along with all stakeholders, we will work to transform Tata Steel UK into a green, modern future ready business.”4
Natarajan Chandrasekaran is an Indian businessman, and the chairman of Tata Sons and Tata Grouphttps://www.mrw.co.uk/news/british-steel-plans-two-electric-arc-furnaces
https://www.tatasteeluk.com/corporate/news/tata-steel-and-uk-government-jointly-agree-investment-proposal
UKSE Steel investment programme for workforce
Tata Steel subsidiary UKSE has announced that its ongoing Support Programme for Wales has exceeded expectations, so far investing £3 million and creating 400 jobs. The Programme was launched in response to changes at Tata Steel as the company moves to greener steel-making.
“Our strategy is to stimulate the jobs market by identifying businesses with growth potential that can create the jobs of the future,” said UKSE Area Manager Rob Barber. “We committed considerable resources to the Programme, both in terms of personnel and finance, and I am delighted to say we have exceeded our expectations and the response from both employers, and new start-up businesses, has been excellent.”
Results include:
- 50 start-ups have received grants and loans
- 30 companies have benefitted from loans
- Port Talbot based JES, an major contractor to the steelworks, has launched an academy to train former steelworkers and others in relevant skills backed with a £200,000 loan from UKSE.5
Government statement of support backs agreement
Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning last month published a statement on the British Steel bill which also favourably overviews the Port Talbot agreement*.
…Steel is at the core of so much economic activity in Wales and the UK. It is a vital material for our current and future success. Construction, automotive, infrastructure and renewables all rely on steel. Steel will be at the heart of the development of new industries as well as supplying our current manufacturing base. With the events we are experiencing globally, now more than ever, we must do all that we can to protect our steel industry.
…The deal secured in Wales was a deal not just for the here and now but also for the future of steel. …It may not have been the deal that we would have wished for, but, given the parameters and the time pressures to secure the build of the new Electric Arc Furnace, it was a substantially improved deal.
The transition to an electric arc furnace at Port Talbot builds a bridge to a more sustainable future for the company. We want our steel sector in Wales to thrive and the transition now taking place at Port Talbot provides a clear and set path for a long term future. We continue to engage with the company on the transition, the significant opportunities and its future plans…
We recognise this transition is having a significant impact on our communities and businesses. Through the continued work of all the partners on the Tata Transition Board we are providing advice and support to those affected and will continue to do so…A webpage is available on the Neath Port Talbot Council website providing access to the support available.
The new UK Government also committed a £2.5 billion National Wealth Fund for the steel sector along with a new Steel Strategy…in addition to the £500m going to Port Talbot and will offer further opportunity for investment in the industry in Wales…
Steel sits at the heart of a much wider transition in Wales. We have a strong holistic vision for the transition of the Wales and the South Wales region based on new infrastructure and investment. This is an exciting vision with broad stakeholder support and transformation for the region into the long term…” 6
Last updated
12 April 2025
* (Statement edited by author - full statement available at https://www.gov.wales/written-statement-steel-industry-bill)
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Text Content References
1wikipedia /AI https://businessnewswales.com/steel-investment-programme-for-jobs-hits-3m
2https://www.unitetheunion.org/news-events/news/2024/june/unite-statement-on-tata-steel-industrial-dispute
3BBC https://www.bbc.co.uk › news › articles
4https://www.tatasteeluk.com/corporate/news/tata-steel-and-uk-government-jointly-agree-investment-proposal
5https://businessnewswales.com/cardiff-capital-region/ https://www.gov.wales/written-statement-steel-industry-bill
Photographs courtesy of
- Dreamstime port-talbot-steel-works-editorial-port-talbot-uk
- Port-Talbot-docks-harboursidesteelworks-site.jpg Business News Wales
- Wikipedia Natarajan Chandrasekaran (born 2 June 1963) is an Indian businessman, and the chairman of Tata Sons and Tata Group.
