Analysis
June 8, 2026
CRU: Tata Steel's Port Talbot EAF faces up to year delay
Written by CRU
The start-up of an electric-arc furnace at Port Talbot, south Wales, could be 12 months later than planned. News of the possible hold-up has emerged while owner Tata Steel deals with the aftermath of a fire which knocked the plant’s cold rolling mill out of action.
Problems with ground conditions, as well as environmental and planning considerations, are reportedly causing a likely delay in the EAF’s production of steel.
Power supplier National Grid is building two substations, one of which requires super-grid transformers, and laying 2 km of underground cable to connect the substations and serve the EAF.
Tata Steel shut down Port Talbot’s two blast furnaces in 2024 and is installing a 3.0-million-metric-ton-per-year mini-mill at a cost of GBP1.25 billion ($1.68 billion, €1.45 bn) as part of decarbonization efforts. Under the original schedule, EAF-based steelmaking was due to start by late 2027.
When it first became clear there were power supply problems, the potential delay was 18 months. That has since been reduced to 12 months and may be cut further, Tata Steel’s CFO, Koushik Chatterjee, said.
“While we are working with the electricity system operator and the National Grid for new electrical infrastructure, National Grid has formally alerted us that their connectivity project is delayed,” Chatterjee was quoted as saying in media reports. “This is critical for Tata Steel UK for the project commissioning. We are in conversation with National Grid and the UK government on resolution of the issues.”
Therefore, it is possible the delay will be reduced to between six and eight months, he added.
“What we are trying to see is at least some connection, one line, as soon as the plant is ready so we can do some trials, test out some equipment etcetera so we don’t waste the time that we’re waiting for the full electricity connection … If we do the preparatory work before the full electricity connection is there, we can do a quicker ramp up,” CEO T. V. Narendran said.
A National Grid spokesperson said: “We recognize the importance of this project and remain committed to delivering the connection safely and at pace, working closely with our partners. Construction is underway, and good progress is being made.
“This is a major, multi-million-pound program involving complex engineering, subject to environmental and planning considerations which require careful design and delivery,” they added.
Another steelworks in Europe has experienced a setback with its power connection. Work has just resumed on constructing an electricity transmission line to SSAB’s Oxelosund steel plant in southern Sweden. The work was delayed for about a month due to appeals to protect an area frequented by capercaillie, a member of the grouse family. The appeals were withdrawn this month.
SSAB now expects Oxelosund’s new EAF will begin operating in Q2’27. The company began construction late 2023, with production previously scheduled to start early 2027.
Meanwhile, Tata Steel is looking to restart the hot strip mill at Port Talbot mid-week. The unit was temporarily shut down when a fire broke out at the plant’s cold rolling mill on June 3. All workers were evacuated safely.
“Our supply chain teams are actively implementing mitigation plans, including alternative processing at the Llanwern cold mill and pickle line,” the company said in a June 5 update. The plant is 75 km (47 miles) from Port Talbot.
“These actions are focused on maintaining continuity of supply and supporting our customers during this period,” the company added.
A Tata executive, who visited Port Talbot after the fire was brought under control, said the pickle line had completely collapsed, while sections of the plant were left blackened and bent by the blaze, with melted steel visible across parts of the site, according to media reports in the company’s home base of India.
The executive also said the company is redeploying workers to Llanwern, which has a rolling capacity of 1.2 million metric tons per year and will be fully ramped up over the next four weeks. The plant is expected to run around the clock, compared with its current schedule of 12 hours a day from Monday to Friday. Anticipated steel output is around 20,000 mt/week once fully ramped up.
