Skanska to design and project manage Tata Steel’s £1.25bn electric arc furnace upgrade

The electric arc furnace initiative is part of a broader strategy to secure the long-term viability of steel production in the region.
Skanska’s Technology business will be responsible for providing civil and structural design services, which includes the engineering of building foundations and the overall structure for the cutting-edge electric arc furnace. Additionally, Skanska will handle the design of site infrastructure and drainage systems essential for the project’s success.
A specialised team from Skanska will be stationed at Tata Steel’s Port Talbot facility, collaborating closely with main contractor Sir Robert McAlpine, following its confirmation to the job last month. This partnership reflects a commitment to local engagement, with the project management contract being led by Skanska’s team based in Bridgend.
The new electric arc furnace is set to replace outdated iron and steelmaking operations at the site and is projected to have the capacity to produce 3M.t of steel annually. Upon its expected completion at the end of 2027, the electric arc furnace is anticipated to lower the site’s carbon emissions from steel production by 90%, which translates to a reduction of around 5M.t of CO₂ each year.
This development is seen as a pivotal step for Tata Steel as it continues its efforts to transition towards greener steelmaking processes, aligning with global sustainability goals while also ensuring the economic future of steel manufacturing in South Wales.
Skanska UK design director Susan Ryall said: “We have been working closely with Tata Steel for the past four years, developing the design and project management solution for this complex scheme.
“We have a long history of delivering civil engineering works at Port Talbot. Building on this experience, we have worked collaboratively with the site team, using our technical expertise to create a solution that meets the needs of this project.
“We are delighted to have been appointed and be playing our part in delivering this new electric arc furnace, helping to safeguard jobs across the UK, improve the environment and create new opportunities in the region.”
Tata Steel UK head of project engineering Dave Murray said: “This £1.25bn investment in low CO2 steelmaking is the biggest commitment the UK steel industry has seen in generations. It is critical that it is delivered on specification, on time and on budget, so it is important for us to choose the very best industrial partners with a strong reputation for delivery.
“We have worked closely with Skanska for a number of years, so have a good understanding of how their world-class capabilities fit in well with our own, and we are looking forward to working with them on this project.”
Source: New Civil Engineer
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