Tata, JCB Sign Agreement for Supply of Low Carbon Steel
Tata Steel Ltd
Tata Steel aims to make the UK the leading site for green steel production in Europe.
Plans are underway to construct an advanced, sustainable EAF that will transform UK-sourced scrap into high-quality steel.
Tata Steel UK, the largest producer and supplier of steel products in the UK, and JCB, a leading manufacturer of earthmoving & construction equipment, have signed a Memorandum of Understanding (MoU) for the supply of low-carbon steel or green steel.
Tata Steel UK's green steel production will begin at its Port Talbot site in Wales after the UK government invested £1.25 billion. This outlay also includes the construction of an advanced electric arc furnace (EAF), which is more sustainable than other conventional steel production methods.
Anil Jhanji Chief Commercial Officer, Tata Steel UK said: “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. They want to be supplied by a trusted partner making quality steel within the UK.
“This announcement that two of the UK’s largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK’s transition to a circular economy.”
The EAF will use UK-sourced scrap metal to manufacture high-quality steel, which will reduce the need to import raw materials like iron ore and coal. This could significantly lower carbon emissions at the site by around 90% and cut the UK's total carbon emissions by 1.5%.
JCB will support this partnership as part of its commitment to lowering carbon emissions. Towards this end, the company invests in sustainable innovations, including electric and hydrogen-powered construction equipment.
The transformation at Port Talbot will start in the summer of 2025. Tata Steel is preparing to make this site a leading one for green steel production in Europe, with more material sourced within the UK, improving self-sufficiency and resilience.
Wayne Asprey, Group Purchasing Director, JCB said: “Tata Steel is a long-term supply partner for JCB and this agreement marks an essential next step in our journey towards supply chain decarbonisation. We are fully supportive of Tata Steel UK’s investment proposals and are pleased to be one of the first customers to endorse those plans by making this agreement to secure British-made green steel as soon as it is available.”
Follow KnowESG's Company News for regular news and views.
Discover an extensive network of ESG providers here
Check out KnowESG's latest ESG Course updates
Source: Tata Steel
