Tata has appointed Maesteg firm Systems Group to refurbish its two continuous casters at Port Talbot.
The life extension will support the journey to sustainable steelmaking with a new electric arc furnace (EAF) which will make steel from scrap steel.
Once operational in 2027, the EAF, which forms part of a £1.2bn investment is expected to reduce Port Talbot’s carbon emissions by approximately 90% - equivalent to fie million tonnes of carbon per year.
Last year primary steelmaking at Port Talbot ceased following the closure of its two blast furnaces with the loss of around 2,800 jobs at Port Talbot and other Tata down stream businesses. Tata will import steel slab for rolling at Port Talbot until the EAF is operational. The caster project will include replacement of over 1.5 miles of key pipework and two giant water tanks.
In future phases there will be further replacements of equipment, structures and pipework as well as the installation of advanced technologies such as variable-speed-drives and next-generation process control systems.
Following the appointment of Systems Group, Tata Steel expects to award further contracts in the coming months for additional electrical mechanical and process control system upgrades.
Ian Ellis, engineering project manager at Tata Steel and lead on the caster life-extension, said: “This is a hugely important project for Port Talbot and for Tata Steel’s future in the Ƶ. The casters are where liquid steel – produced at more than 1,600 degrees celsius – is solidified into slabs, ready for further processing.
“This work will ensure our existing casters are in the very best condition to handle steel from our new electric arc furnace in the volumes and qualities demanded by our customers. Importantly, we can retain refurbish and replace these critical facilities rather than having to build from new, saving considerable cost and time.
“We’re delighted to be working with Systems Group – a trusted local partner – on this first phase of work.”
Ryan O’Neill, managing director at Systems Group, said: “We are delighted to have been awarded this important contract by Tata Steel. As a local company, we are proud to play a role in helping secure the future of steelmaking in South Wales.
“This project not only supports the region’s economy but also helps deliver cutting-edge, low-carbon steel production.”
While the US and Ƶ have struck a trade deal, which includes the automotive sector, negotiations are continuing over steel and aluminium with a current deadline set for July 9th.
There are concerns that the US administration will seek to exclude Port Talbot from a deal on a zero tariff rate as it is no longer a melt and pour operation, with slab being imported from third countries in India and Holland where tariffs of 50% are now in place when exporting into the US marketplace. The Ƶ Government will look for an exemption for Port Talbot until the EAF is up and running.
A Welsh Government spokesperson said: “We welcome the announcement that under the economic prosperity deal (between the US and Ƶ) there will be a removal of tariffs on Ƶ steel into the US in the future. This will support the sector, and our steel exports to the US.
“We continue to work with the Ƶ Government through the inter-governmental machinery to help inform their negotiations with the US, and we are working with our businesses to assess and address the impact on the steel sector in Wales, including any steel origin requirements.
"We also continue to encourage the Ƶ Government to protect the sector from trade diversion should other nations be unable to secure a deal with the US.”
