Skanska has been appointed to provide design and project management services to support Tata Steel UK’s decarbonisation of its Port Talbot steelworks plant in South Wales.
Under the deal, Skanska’s Technology business will provide civil and structural design for key sections of the project.
The £1.25 billion electric arc furnace-based steel production facility is set to be capable of producing three million tonnes of steel a year.
Skanska will incorporate design for building foundations and structures, including for a new electric arc furnace (EAF), and the team will also design site infrastructure and drainage.
Last month, Sir Robert McAlpine was appointed main works contractor and will lead the main, civil, structural, and building works on the project.
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.
It aims to be completed over a three-year construction period, unlocking further low-CO2 steel production.
A technical team from Skanska will be embedded with Tata Steel at Port Talbot, working alongside Sir Robert McAlpine.
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 per cent, equivalent to five million tonnes of CO₂ a year.
Susan Ryall, engineering and design director at Skanska UK, said: “We have been working closely with Tata Steel for the past four years. 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.”
Tata Steel UK’s head of project engineering, Dave Murray, 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.”
This morning, the government announced £8.2 million in funding for the first regeneration project in Port Talbot with other projects set to follow.
The government expects more than 100 jobs to be created and supported and eventually benefit the South Wales economy by £87 million.
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