Tata Steel will supply JCB with recycled 鈥榞reen鈥� steel from Port Talbot for its construction machinery after completing its transformation plans.
This is the first supply agreement Tata Steel UK has made since announcing a 拢1.25bn joint investment with the UK Government to transition to high-quality, low-CO2 steel production in south Wales.
The project includes building an electric arc furnace (EAF)鈥攐ne of the largest in the world鈥攐ffering a lower-CO2 alternative to the traditional blast furnace method. The EAF will turn UK-sourced scrap metal into new high-quality steel. Tata Steel鈥檚 plans will cut the site鈥檚 CO鈧� emissions by up to 90% and UK鈥檚 overall carbon emissions by about 1.5%, it claims.
Tata Steel UK chief commercial officer Anil Jhanji said: 鈥淥ne 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.
聽鈥淭his announcement that two of the UK鈥檚 largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK鈥檚 transition to a circular economy.鈥�
JCB group purchasing director Wayne Asprey added: 鈥淭ata 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鈥檚 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.
"This agreement marks an essential next step in our journey towards supply chain decarbonisation."
Tata Steel intends to make Port Talbot one of Europe鈥檚 premier centres for green steelmaking. Tata says that the 拢1.25bn investment, which includes a UK government grant of up to 拢500 million, is the largest capital expenditure investment in UK steel production for decades. Three-quarters of the raw materials required will be sourced from the UK, up from 10% today.
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