JCB signs MoU with Tata for arc furnace steel

The Memorandum of Understanding (MOU) marks Tata's first supply deal since heavy steelmaking ceased at the site in September 2024, with the loss of nearly 3,000 jobs. Port Talbot is due to be refitted with a new 3-million-tonne-per-year arc furnace that will cut the steelworks’ CO2 emissions by up to 90 per cent and UK emissions by about 1.5 per cent. The transition to electric steelmaking is a £1.25 billion project, with the UK government contributing £500 million.

In October, Tata signed a contract with Tenova to deliver the new arc furnace alongside additional advanced steelmaking equipment. Installation is expected to start in summer 2025.

“One of the key drivers in our transition plans is that our long-standing and loyal customers such as JCB need green steel to meet their own decarbonisation ambitions,” said Anil Jhanji, chief commercial officer, Tata Steel UK. “They want to be supplied by a trusted partner making quality steel within the UK.