News from this site: On September 11, Tata Steel UK reached a funding agreement of 500 million pounds (approximately US$669 million) with the British government to support Tata Steel UK in building an advanced steel plant at the Port Talbot Steel Plant in Wales, UK. Electric arc furnace. This amount is consistent with that agreed by the previous Conservative government in the UK in autumn 2023.

According to the agreement, the construction content of the project includes an electric arc furnace and a refining furnace, a hot coil box for the new hot rolling unit, a shearing machine and a crane, etc. So far, the basic engineering of this project has been completed, equipment orders will be placed soon, large-scale construction will begin in the summer of 2025, and the electric arc furnace is expected to be put into operation within three years. The company has already shut down its No. 5 blast furnace and Morfa coke oven, and plans to shut down its No. 4 blast furnace in Port Talbot at the end of September.

The British steel industry is facing severe market conditions, with high costs, oversupply in the global market, reduced market demand, and fierce international business competition that has hobbled capital investment. The British government plans to release a national steel industry development strategy in the spring of 2025. The strategy will be developed in conjunction with relevant departments in the steel industry and aims to ensure the sustainable development of the UK steel industry. The strategy will examine how local authorities can expand the capacity and potential of the UK steel industry, while assessing the UK's future demand for steel and making appropriate investment decisions.

In addition, Tata Steel UK will work with local authorities to assess future investment opportunities in the local steel industry and provide better redundancy terms and more retraining opportunities. Welsh Minister Joe Stevens said the agreement secures the near-term development of the Port Talbot steelworks and lays the foundation for future investment, improving workforce protection conditions in South Wales at no additional cost.