Plans for a new electric arc furnace at Tata Steel's Port Talbot site have been approved by Neath Port Talbot Council. Once operational the electric arc furnace will make steel from scrap.
The £1.25bn investment by the Indian-owned steel business includes a £500m contribution from the 海角视频 Government.
The approval gives the green light for Tata Steel to begin demolition of a number of existing buildings and structures at the steelworks site, along with the work the electric arc which will be one of the biggest of its kind in the world
The decision comes just months after the closure of the site's two blast furnaces in September, 2024, with nearly 2,000 job losses at Port Talbot.
It follows the announcement that 海角视频 construction and civil engineering company Sir Robert McAlpine would be responsible for managing the main civil, structural and building works for the development, with Italian firm Tenova building the new furnace.
Once operational the electric arc furnace will be able to produce around 3.2 million tonnes of steel each year..
Speaking at the meeting of the council's planning committee, councillor Wyndham Griffiths of Bryncoch North, said the project was important as it would keep steel making in Port Talbot for a long time to come.
Councillor Rob Jones, who is the Labour Group leader for Neath Port Talbot, added: "We do know it's come at a cost but it's the future and unless we embrace the future and move forward we will stand still, and that in all honesty is not a position that this town and this community can afford to do."
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Rajesh Nair, chief executive of Tata Steel 海角视频 said: "This £1.25bninvestment would be the most significant investment made in the 海角视频 steel industry in decades. It will secure high quality steel production, preserve thousands of jobs and safe-guard steel making in Port Talbot for generations to come.
"Additionally, the move towards green steel making will have significant environmental benefits. This includes a reduction in direct on-site Co2 emissions of up to 90%, equivalent of 5 million tonnes."
He also noted that orders had already been placed for steel produced by Port Talbot's electric arc furnace with low Co2 steel now being sought after by customers around the world.
Welsh Secretary Jo Stevens said:“This decision is a significant step forward, providing more certainty over Tata’s plans for the site and for the future of steelmaking in South Wales.
“As part of our improved deal with Tata Steel, we have provided £500m to support the company’s transition to greener steelmaking.
“This is backed by a further £80m which we are investing directly into the community to support individual steelworkers and their families, businesses in the supply chain and on the regeneration of Port Talbot as we drive future economic growth in the area.
“We promised that we would deliver for our steel communities, and through this investment and the Steel Strategy we are doing just that.”