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Tata Steel hires McAlpine to build £1.25bn Port Talbot steelworks

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Sir Robert McAlpine has been appointed main works contractor to support Tata Steel UK’s decarbonisation of its Port Talbot steelworks plant in South Wales  

Credit: Tata Steel.

The contractor will lead the main, civil, structural, and building works of the £1.25 billion electric arc furnace-based steel production facility, capable of producing 3 million tonnes of steel a year.  

The major project entails the construction of the arc furnace, ladle furnaces and associated works within the existing Basic Oxygen Steelmaking (BOS) plant and surrounding area.  

The project aims to be completed over a three-year construction period, unlocking further low-CO2 steel production. 

Enabling works are due to start in Q1 2025, with main, civil, structural, and building works in Q3, subject to planning approval. 

“We are proud to be part of the decarbonisation of Port Talbot steelworks, which will play a pivotal role in turning the Port Talbot site into a world-leading hub for sustainable steel production,” said Craig Allen, managing director, Industrial, Sir Robert McAlpine. 

“Our robust relationship with Tata Steel UK and long-standing industrial expertise makes us the ideal partner for this transformation.  

“We look forward to working collaboratively, as part of a fully Integrated Project Team, to deliver the project successfully.” 

McAlpine has been working with Tata Steel UK since September 2022, supporting feasibility studies associated with the construction of the facility. 

The contractor has also been responsible for construction of various parts of the steelworks over the past 70 years. 

Tata Steel’s EAF project lead, Peter Jones, said: “We’re delighted to confirm the appointment of Sir Robert McAlpine to support us on this once-in-a-generation investment project.  

“Our new arc furnace will be one of the largest and most sophisticated of its kind in the world, so it is important that we work with highly skilled and experienced partners to ensure its success.” 

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