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Sir Robert McAlpine-led construction of Port Talbot furnace begins with £500m investment, securing 5,000 jobs

Danielle Kenneally
journalist

Construction has officially begun on the Sir Robert McAlpine-led electric arc furnace at Port Talbot, a project backed by a £500 million government grant, set to secure 5,000 local jobs while transitioning the site to greener steel production.

Credit: Francisco Fernandes/Unsplash.

The new furnace at Port Talbot is central to the plant’s transformation, securing long-term job stability while driving the shift to more sustainable, low-carbon steel production.

This transition will significantly reduce carbon emissions by 90 per cent, with the steel being used across sectors such as construction and infrastructure.

Construction and engineering firm, Sir Robert McAlpine is playing a pivotal role in the project.

The company was appointed as the main works contractor at the beginning of the year and will lead the main, civil, structural, and building works, with the project to be completed over a three-year construction period.

Paul Bird, project director at Sir Robert McAlpine, said: “We want this to be the number one project in the country, but we also want people to enjoy working here. It will certainly be a challenge, but we just need to work together as a team.

Some of these companies have been involved with us on this journey so far and a lot are local companies too, a lot of Welsh employment as we work to transition from blast furnace steelworks to electric arc furnace steelmaking.”

Contractor, Skanska is providing the design and project management services.

In addition to the furnace investment, the UK Government is providing £80 million to support workers and local communities, ensuring the continued future of steelmaking in Port Talbot.

The project is part of a wider £2.5 billion Steel Strategy to modernise the UK industry, reduce energy costs, and protect against foreign steel imports.

Tata Steel, a key subsidiary of the multinational Tata Group, is leading the development of the project.

Natarajan Chandrasekaran, chairman of Tata Group, described the launch, of what is known as Project Invictus, as a “proud day,” marking a significant step toward cleaner steel production in the UK.

This initiative is further strengthened by the UK’s trade deal with India.

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