Tata Steel has appointed Bridgend-based Skanska to deliver civil and structural design and project-management services for its state-of-the-art electric arc furnace project.
Skanska will provide design and project management services for the new low carbon steelmaking scheme, that will help to secure the long-term future of steelmaking in South Wales.
Under the deal, Skanska’s Technology business will provide civil and structural design for key sections of the project. This includes design for building foundations and structures, including for the new electric arc furnace (EAF). In addition, the team will design site infrastructure and drainage.
“We are delighted to be playing our part in delivering this new electric arc furnace, helping to safeguard jobs across the UK, improve the environment and create new opportunities in the region.” Susan Ryall, Skanska UK
“We have been working closely with Tata Steel for the past four years, developing the design and project management solution for this complex scheme,” said Susan Ryall, Engineering and Design Director at Skanska UK.
“We have a long history of delivering civil engineering works at Port Talbot. Building on this experience, we have worked collaboratively with the site team, using our technical expertise to create a solution that meets the needs of this project.
“We are delighted to have been appointed and be playing our part in delivering this new electric arc furnace, helping to safeguard jobs across the UK, improve the environment and create new opportunities in the region.”
"This £1.25 billion investment in low CO2 steelmaking is the biggest commitment the UK steel industry has seen in generations. It is critical that it is delivered on specification, on time and on budget" Peter Jones, Tata Steel
A technical team from Skanska will be embedded with Tata Steel at Port Talbot, delivering project management services.
Tata Steel UK’s EAF Project Lead, Peter Jones, added: “This £1.25 billion investment in low CO2 steelmaking is the biggest commitment the UK steel industry has seen in generations. It is critical that it is delivered on specification, on time and on budget, so it is important for us to choose the very best industrial partners with a strong reputation for delivery.
“We have worked closely with Skanska for a number of years, so have a good understanding of how their world-class capabilities fit in well with our own, and we are looking forward to working with them on this project.”
The design and project management contract will be led by Skanska’s Technology team based at Bridgend, South Wales – supporting local employment and creating a platform for future growth.
The new EAF will replace the site’s decommissioned iron and steelmaking facilities and will have an annual capacity to produce three million tonnes of steel. When commissioned from the end of 2027, the EAF will reduce the site’s steelmaking carbon emissions by 90%, equivalent to five million tonnes of CO₂ a year.
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Notes to Editors:
For further information, please contact:
Skanska: David Tuddenham David.Tuddenham@skanska.co.uk
Tata Steel: Tim Rutter: tim.rutter@tatasteeleurope.com +44 (0)7850 990755
About Tata Steel
- 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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