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Skanska to join McAlpine on £1.25bn Port Talbot art furnace project

Skanska McAlpine Port Talbot
A technical team from Skanska will work with Tata Steel and main contractor McAlpine at Port Talbot

Tata Steel has appointed Skanska to deliver civil and structural design and project management services for the £1.25bn electric arc furnace scheme at Port Talbot steelworks.

The Swedish contractor’s UK arm will join Sir Robert McAlpine on the “once-in-a-generation investment project”. McAlpine was awarded the main civil, structural and building works contract last month.

Skanska’s south Wales-based technology business will provide civil and structural design for key sections of the project, including the design of building foundations and structures such as the new electric arc furnace. It will also design site infrastructure and drainage. 

‘Strong reputation for delivery’

Susan Ryall, engineering and design director at Skanska UK, 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.”

Tata Steel UK’s head of project engineering, Dave Murray, added: “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.”

The new electric arc furnace will replace the site’s decommissioned iron and steelmaking facilities and will have the capacity to produce three million tonnes of steel per year.

When commissioned from the end of 2027, the electric arc furnace will reduce the site’s steelmaking carbon emissions by 90%, equivalent to five million tonnes of CO₂ a year, said Tata Steel.

Enabling works for the project will start in Q1 2025 with the main civil, structural and building works scheduled to start in Q3 2025, subject to planning approval.

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