JCB signs MoU with Tata for arc furnace steel
Tata Steel UK will supply JCB with low carbon steel from Port Talbot’s new electric arc furnace as part of a new agreement.
The Memorandum of Understanding (MOU) marks Tata’s first supply deal since heavy steelmaking ceased at the site in September 2024, with the loss of nearly 3,000 jobs. Port Talbot is due to be refitted with a new 3-million-tonne-per-year arc furnace that will cut the steelworks’ CO2 emissions by up to 90 per cent and UK emissions by about 1.5 per cent. The transition to electric steelmaking is a £1.25 billion project, with the UK government contributing £500 million.
In October, Tata signed a contract with Tenova to deliver the new arc furnace alongside additional advanced steelmaking equipment. Installation is expected to start in summer 2025.
“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,” said Anil Jhanji, chief commercial officer, Tata Steel UK. “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.”
JCB’s decarbonisation efforts began in 2010 with its Road to Zero programme. The intervening years have seen the Staffordshire company develop both hydrogen and electric power solutions for its construction equipment. JCB says it is currently testing the world’s first construction machines powered by hydrogen combustion engines. Low carbon steel from Tata will help the company reduce its embedded emissions, complementing its clean power solutions.
“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,” said Wayne Asprey, JCB’s group purchasing director.
“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.”
Source: https://www.theengineer.co.uk/content/news/jcb-signs-mou-with-tata-for-arc-furnace-steel
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Source: TheEngineer.co.uk
