Tata Steel is collaborating with local companies Darlow Lloyd & Sons, Wernick Buildings, and Andrew Scott Ltd, securing 300 skilled jobs as part of the company's £1.25 billion investment in low CO2 steelmaking at its Port Talbot site in South Wales, UK.
Tata Steel has appointed three South Wales contractors to deliver key parts of its £1.25 billion cutting-edge green steelmaking investment at Port Talbot.
Over 300 skilled jobs in the local supply chain will be part of new contracts signed with Bridgend-based companies Darlow Lloyd & Sons, Wernick Buildings, and Swansea-based business, Andrew Scott Ltd.
"This partnership will boost employment across Neath Port Talbot and lay the foundation for future growth across the manufacturing sector."
Darlow Lloyd & Sons will play a key role in the initial phases of the project, overseeing excavation, recycling, infrastructure, and drainage works essential to the site’s transition to Electric Arc Furnace (EAF) steelmaking.
Director, Rhys Lloyd, said: “We are delighted to announce this partnership which will boost employment across Neath Port Talbot and lay the foundation for future growth across the manufacturing sector.
"Our involvement in this transformation is not only a privilege, but fundamental to maintaining our strong presence and heritage at the site. "
“This collaboration safeguards our experienced workforce and allows us to appoint local experts with transferable skillsets to this once-in-a-lifetime project.”
Critical infrastructure, including the construction of a new scrap yard to manage the inflow of UK-sourced used steel as a feedstock for the new Electric Arc Furnace (EAF), will be completed by Andrew Scott Ltd.
David Evan Williams, Civil Contracts Director said: “Having worked major on civil and construction projects at Port Talbot since the late 1800s, our involvement in this transformation is not only a privilege, but fundamental to maintaining our strong presence and heritage at the site.
"As work progresses, we aim to provide further opportunities for individuals in surrounding communities to help deliver this exciting vision.”
“We have committed to supporting local talent, ensuring that we fill positions with our skilled workforce, alongside experienced former Tata Steel workers and experts in the supply chain. As work progresses, we aim to provide further opportunities for individuals in surrounding communities to help deliver this exciting vision.”
Ben Wernick, Managing Director, Wernick Buildings added: “We are thrilled to bring our wealth of experience in the modular construction sector to deliver the centrepiece of Port Talbot’s contractor village; an 8500 square metre space spanning three buildings, comprised of offices and welfare zones.
“90% of the workers we employ to build this impressive space will be from communities surrounding the steelworks – spanning Swansea, Neath Port Talbot and Cardiff – allowing us to nurture and grow regional talent.”
“The expertise of these long-standing contractors is key to the success of our transformation."
Industry Minister Sarah Jones commented: “Today’s news is a major boost for communities in South Wales, delivering high-skilled opportunities for local people, and will help Welsh steelmaking to drive growth and attract further investment as part of our Plan for Change.”
Secretary of State for Wales Jo Stevens added: “We have supported Tata Steel with £500m to safeguard Welsh steelmaking and I’m pleased that the company is itself investing in the local supply chain, securing hundreds of jobs and driving economic growth.
“It is fantastic news for the South Wales economy that local firms have secured these major contracts to deliver the transformation of steelmaking at Port Talbot.”
Lloyd Bryant, Head of Infrastructure & Amenities, Tata Steel, concluded: “The expertise of these long-standing contractors is key to the success of our transformation.
"We look forward to collaborating with them, under Sir Robert McAlpine’s supervision, to safeguard the future of sustainable steelmaking in the area, securing jobs and ensuring the long-term viability of steelmaking in Wales for generations."
WATCH: Fly thorough of the new buildings here
NOTES
- This is the latest milestone Tata Steel has passed on its transition to green steelmaking. Last month, the company appointed Sir Robert McAlpine as the project’s mains works contractor and in October, it announced that world-leading metals technology manufacturer Tenova will supply the new electric arc furnace
- Construction work for Tata Steel's Electric Arc Furnace (EAF) project at Port Talbot is set to begin in Summer 2025. This marks the start of a significant transformation in the steelmaking process at the site.
- When fully operational in 2028, Tata Steel’s Electric Arc Furnace will reduce the site’s carbon emissions by 90%, equivalent to five million tonnes of CO₂ a year
- Flythrough footage of Wernick Buildings’ contractor office and welfare space can be found here: TATA full flythrough | Wernick Buildings
About Tata Steel UK
- The Tata Steel Group has been named one of the most ethical companies in the world, and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030. - In October 2024, Tata Steel ceased ironmaking at its Port Talbot site and temporarily paused steelmaking pending the construction of a 3.2Mtpa Electric Arc Furnace, due to be commissioned late in 2027 / early 2028. For that period, the business will import slab and hot rolled coil to support manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France, Germany and UAE. It also benefits from a network of sales offices around the world.
- Throughout 2024 Tata Steel UK has been undergoing a restructuring that will reduce the size of its workforce to around 5000 direct employees, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
- Tata Steel Group is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.
The group recorded a consolidated turnover of around US$27.7 billion in the financial year ending March 31, 2024.
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