Construction News

30 January 2025

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Tata Steel selects Sir Robert McAlpine for £1.25bn Port Talbot low-carbon steel project

1 day Sir Robert McAlpine has secured the main contract for Tata Steel’s £1.25bn ‘low-carbon’ steel plant in Port Talbot.

CGI of the completed project
CGI of the completed project

The company will oversee the main, civil, structural and building works for the new facility under a construction management contract. The works involve construction of a new electric arc furnace, ladle furnaces and associated facilities within the existing basic oxygen steelmaking (BOS) plant.

The project is expected to take three years with enabling works starting early this year and the main structural and building works starting in the third quarter of this year.

Tata Steel closed Port Talbot’s last coke-fired blast furnace in September last year, bringing generations of traditional steel-making in South Wales to an end.

The move to low-carbon technology and closure of the existing production facility meant the loss of almost 3,000 jobs and drew widespread criticism, particularly from the Unite union which described the closure as “industrial vandalism”.

Tata Steel hopes new plant will make Port Talbot a leading centre for low-carbon steel production. The electric arc furnace will be used to recycle scrap to produce up to three million tonnes of steel each year.

Sir Robert McAlpine has been working closely with Tata Steel since September 2022 to support the feasibility studies associated with the construction of the new electric arc plant.  The contractor has previously worked at Port Talbot on several occasions and a variety of contracts over the past 70 years.

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Tata Steel and Sir Robert McAlpine hope to provide new jobs for the local community and are working with schools and colleges in the area to deliver training and build strategic relationships with key supply chain partners.

Sir Robert McAlpine managing director Craig Allen said: “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. 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.”

Tata Steel’s project leader for the electric arc furnace, Peter Jones, said he was delighted to confirm the appointment of Sir Robert McAlpine. “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.

“We have a longstanding and trusted collaborative relationship with Sir Robert McAlpine, so are confident they are the right partner for us in the project”.

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MPU

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