{ "query": "Tata Steel UK EAF transition construction cost trends 2026 NEC4 compensation event benchmarks", "raw_results": [ { "url": "https://cfo.economictimes.indiatimes.com/news/strategy-operations/tata-steel-aims-to-commission-uk-electric-arc-furnace-project-by-2027/121717217", "title": "Tata Steel aims to commission UK electric arc furnace project by 2027", "content": "Speaking further on the UK plan, the officials said the structural transition is also accompanied by a significant focus on cost rationalisation as the company plans to bring down its fixed costs further from 762 million pounds in FY25 to 540 million pounds in the coming year. \n \nTata Steel Chairman N Chandrasekaran \"company is on track on its transition to low-emission steelmaking. The decommissioning of two blast furnaces at Port Talbot, has cleared the way for the next-generation Electric Arc Furnace (EAF) project, supported by the UK government\". \n \n The reductions are based on optimising substrate costs, modernising IT infrastructure, rationalising downstream operations and eliminating corporate overheads. [...] cfo cfo\n\nGet App\n\nCFO Interviews CFO Moves GST Economy Editor's Note Auditors Diary CFO Talk Budget 2026 More\n\nETCFO ExplainsCFO SpeakETCFO VideosETCFO Research\n\n \n\n Integrated Campaigns\n Bespoke Events\n Advertorial\n Virtual Engagement\n Videos\n Digital Branding & Awareness\n More;)\n\n Strategy & Operations\n 2 min read\n\n# Tata Steel aims to commission UK electric arc furnace project by 2027\n\nTata Steel is set to begin construction of its low-carbon electric arc furnace (EAF) steelmaking project in Port Talbot, UK, by July 2025, with operations commencing in 2027. Supported by £500 million in UK government funding, this transition aims to produce 3.\n\n PTI\n\n Updated On Jun 9, 2025 at 08:57 AM IST [...] New Delhi, Homegrown Tata Steel is expecting to start the construction of its low-carbon EAF-based steel making project in the UK from July 2025 and commence operations by 2027, top company officials said. \n \n The company has received necessary approvals for its USD 1.5 billion project at Port Talbot, Tata Steel CEO & MD T V Narendran, and ED & CFO Koushik Chatterjee said in the company's annual report for FY2024-25. \n \n \"We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28, supported by 500 million pounds in the UK Government funding,\" the management said. \n \n\nAdvt", "score": 0.5663309, "raw_content": null }, { "url": "https://m.economictimes.com/industry/indl-goods/svs/steel/tata-steel-looks-to-begin-construction-of-eaf-project-in-uk-in-july/articleshow/121704928.cms", "title": "Tata Steel looks to begin construction of EAF project in UK in July - The Economic Times", "content": "\"We have exited from steelmaking through the end-of-life heavy end assets in Port Talbot, and moved to a downstream model using imported substrate from India, the Netherlands and other external sources,\" an official said. \n \nSpeaking further on the UK plan, the officials said the structural transition is also accompanied by a significant focus on cost rationalisation as the company plans to bring down its fixed costs further from 762 million pounds in FY2024-25 to 540 million pounds in the coming year. \n \nThe reductions are based on optimising substrate costs, modernising IT infrastructure, rationalising downstream operations and eliminating corporate overheads. [...] Homegrown Tata Steel is expecting to start the construction of its low-carbon EAF-based steel making project in the UK from July 2025 and commence operations by 2027, top company officials said. \n \n The company has received necessary approvals for its USD 1.5 billion project at Port Talbot, Tata Steel CEO & MD T V Narendran, and ED & CFO Koushik Chatterjee said in the company's annual report for FY2024-25. \n \n \"We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28, supported by 500 million pounds in the UK Government funding,\" the management said.\n \n \n They said that planning approval has been received for the EAF (electric arc furnace) project at Port Talbot and the construction is expected to commence in July 2025. [...] AbcMedium\n\nAbcLarge\n\nSave\n\nPrint\n\nComment\n\nSynopsis\n\nTata Steel is set to begin construction of its low-carbon electric arc furnace (EAF) steelmaking project in Port Talbot, UK, in July 2025, with operations slated to commence by 2027. Supported by UK government funding, this initiative transitions Tata Steel from blast furnaces to a low-emission EAF process utilizing local scrap, while also focusing on significant cost rationalization.\n\nTata SteelReuters", "score": 0.47738418, "raw_content": null }, { "url": "https://www.fortuneindia.com/business-news/tata-steel-uks-two-stage-transition-plan-promises-historic-turnaround/126299", "title": "Tata Steel UK’s two-stage transition plan promises historic turnaround", "content": "Tata Steel Ltd• Fortune 500 India 2025\n\nTata Steel is preparing to implement a two-stage transformation to relaunch operations with a focus on green steel production Credits: Getty Images\n\nGoogle\n\nSet Fortune India ✓As Preferred on Google\n\nTata Steel is preparing to implement a two-stage transformation at its UK subsidiary over the next two years, aiming to relaunch operations with a focus on green steel production. The first phase centres on achieving positive EBITDA by reducing fixed costs by £222 million in FY26. The second phase involves commissioning a 3.2 million tonne per annum (MTPA) electric arc furnace (EAF) in 2027, marking a major shift in its steelmaking process.\n\nSign up for Fortune India's ad-free experience\n\nEnjoy uninterrupted access to premium content and insights. [...] [Go Ad-Free](/subscription)\n\nIn FY25, Tata Steel UK (TSUK) successfully lowered its fixed costs to £762 million from £995 million the previous year. The company now aims to bring this down further to £540 million in the current fiscal. Following the closure of its two blast furnaces at Port Talbot, TSUK has transitioned to a downstream model, relying on imported steel substrates—primarily slabs—from India, the Netherlands, and other sources.\n\nCost optimisation efforts include streamlining substrate procurement, upgrading IT infrastructure, rationalizing downstream operations, and eliminating corporate overheads. Despite these reductions, TSUK has maintained delivery volumes at 2.5 MT. [...] People\n\nBusiness\n\n Markets\n Cryptocurrency\n\n IPO\n\n Stock Market\n\nEconomy\n\n Personal Finance\n Mutual Funds\n\n Banking\n\nOpinion\n\nTechnology\n\nAuto\n\nLifestyle\n\nLong Reads\n\nFirst Edit\n\nExchange\n\nIdeas\n\nBuy on Amazon\n\nMagazine Annual Subscription\n\n Archives\n Enterprise\n\n Investing\n\n Macro\n\n Infographics\n\nGo Ad-Free\n\nHomeBusiness NewsTata Steel UK’s two-stage transition plan promises historic turnaround\n\n# Tata Steel UK’s two-stage transition plan promises historic turnaround\n\nNevin John\n\n/2 min read\n\nShare\n\nShare\n\nADVERTISEMENT\n\nA targeted £222 million reduction in fixed costs for FY26 is expected to help the British subsidiary achieve positive EBITDA.\n\nTHIS STORY FEATURES\n\nTata Steel Ltd• Fortune 500 India 2025", "score": 0.46249792, "raw_content": null }, { "url": "https://www.neccontract.com/news/nec4-ecc-compensation-event-assessment-a-worked-example?srsltid=AfmBOoqHzwr_kxyqpaLDLEkXzeZvTM7RdekEi4sg-mJ0fZqO9Ho9CWgE", "title": "NEC4 ECC compensation event assessment – a worked example | News | NEC Contracts", "content": "Scenario 1: forecast defined cost of type A shelving is £50,000\n\n| CORRECT ASSESSMENT #1 | | |\n --- \n| Forecast defined cost type A shelving (a) | 50,000 | |\n| Forecast defined cost type B shelving (b) | 80,000 | |\n| b-a | 30,000 | The impact of the compensation event is to increase the defined cost by £30,000 |\n| Add fee (10%) | 3,000 | |\n| (c) | 33,000 | Including the fee, the compensation event is assessed at £33,000 |\n| Changed activity price | 93,000 | The changed activity schedule price is £60,000 + £30,000 + £3,000 = £93,000 |\n\nWithout the compensation event, the contractor would have made £10k on this activity compared with its tender (defined cost type A £50k, activity £60k). This position is maintained.\n\nScenario 2: forecast defined cost of type A shelving is £70,000 [...] | CORRECT ASSESSMENT #2 | | |\n --- \n| Forecast defined cost type A shelving (a) | 70,000 | |\n| Forecast defined cost type B shelving (b) | 80,000 | |\n| b-a | 10,000 | The impact of the compensation event is to increase the defined cost by £10,000 |\n| Add fee (10%) | 1,000 | |\n| (c) | 11,000 | Including the fee, the compensation event is assessed at £11,000 |\n| Changed activity price | 71,000 | The changed activity schedule price is £60,000 + £10,000 + £1,000 = £71,000 |\n\n## Other considerations [...] It may be considered that the above information is sufficient information to enable the compensation event to be assessed. Using only this information, however, would result in an incorrect assessment, as shown by the following calculations.\n\n| INCORRECT ASSESSMENT #1 | |\n --- |\n| Forecast defined cost (a) | 80,000 |\n| Current price (b) | 60,000 |\n| a-b | 20,000 |\n| Add fee (10%) | 2,000 |\n| (c) | 22,000 |\n| Revised activity price (b+c) | 82,000 |\n\n| INCORRECT ASSESSMENT #2 | |\n --- |\n| Forecast defined cost (a) | 80,000 |\n| Add fee (10%) | 8,000 |\n| Revised activity price | 88,000 |\n\nBoth the above assessments are incorrect as they have not followed what the contract requires.\n\n## Effect on forecast defined cost", "score": 0.44189036, "raw_content": null }, { "url": "https://www.tatasteeluk.com/sites/default/files/pimcore_doc/tata-steel-uk-senedd-2026-manifesto-february-2026.pdf", "title": "[PDF] Tata Steel UK", "content": "goes live Late 2027 Tata Steel UK’s transition to Electric Arc Furnace (EAF) steelmaking is the largest investment in the UK steel industry for decades – cutting emissions by 90%, safeguarding domestic production, and protecting thousands of skilled jobs across Wales and the UK. Since 2007, Tata Steel has invested more than £6.3 billion in its UK operations. In 2024, we committed to a £1.25 billion transformation of our Port Talbot site, backed by £500 million from the UK Government. Our strategic investment places Wales at the heart of EAF steelmaking in Europe and ensures that we harness our own indigenous resources for the future. Of the 10-11 million tonnes of scrap steel generated annually in the UK, approximately 80% is currently exported. By redirecting some of this valuable [...] Tata Steel UK Creating a Secure Future for Welsh Steel A MESSAGE FROM OUR CEO KEY PROJECT MILESTONES 2 Key milestones in the transformation of Port Talbot steelmaking Design and engineering phase 2020 – 2024 Closure of Blast Furnace 5 by end June 2024 Closure of Blast Furnace 4 and wind down remaining heavy end by end September 2024 Upgrades to steel mills and continuous casters Late 2024 – 2027 Planning process for new Electric Arc Furnace Spring 2024 – summer 2025 Electricity connection agreement with the ESO May 2024 Constructing new steelmaking technology Summer 2025 – late 2027 Electric Arc Furnace start-up phase Late 2027 – 2028 £1.25 billion joint investment agreed with UK Government September 2023 New electricity connection goes live Late 2027 Tata Steel UK’s transition to Electric", "score": 0.41023695, "raw_content": null } ], "formatted": "Source: Tata Steel aims to commission UK electric arc furnace project by 2027\nURL: https://cfo.economictimes.indiatimes.com/news/strategy-operations/tata-steel-aims-to-commission-uk-electric-arc-furnace-project-by-2027/121717217\nSpeaking further on the UK plan, the officials said the structural transition is also accompanied by a significant focus on cost rationalisation as the company plans to bring down its fixed costs further from 762 million pounds in FY25 to 540 million pounds in the coming year. Tata Steel Chairman N Chandrasekaran \"company is on track on its transition to low-emission steelmaking. The decommissioning of two blast furnaces at Port Talbot, has cleared the way for the next-generation Electric Arc Furnace (EAF) project, supported by the UK government\". The reductions are based on optimising substrate costs, modernising IT infrastructure, rationalising downstream operations and eliminating corporate overheads. [...] cfo cfo Get App CFO Interviews CFO Moves GST Economy Editor's Note Auditors Diary CFO Talk Budget 2026 More ETCFO ExplainsCFO SpeakETCFO VideosETCFO Research Integrated Campaigns Bespoke Events Advertorial Virtual Engagement Videos Digital Branding & Awareness More;) Strategy & Operations 2 min read # Tata Steel aims to commission UK electric arc furnace project by 2027 Tata Steel is set to begin construction of its low-carbon electric arc furnace (EAF) steelmaking project in Port Talbot, UK, by July 2025, with operations commencing in 2027. Supported by £500 million in UK government funding, this transition aims to produce 3. PTI Updated On Jun 9, 2025 at 08:57 AM IST [...] New Delhi, Homegrown Tata Steel is expecting to start the construction of its low-carbon EAF-based steel making project in the UK from July 2025 and commence operations by 2027, top company officials said. The company has received necessary approvals for its USD 1.5 billion project at Port Talbot, Tata Steel CEO & MD T V Narendran, and ED & CFO Koushik Chatterjee said in the company's annual r\n\n---\n\nSource: Tata Steel looks to begin construction of EAF project in UK in July - The Economic Times\nURL: https://m.economictimes.com/industry/indl-goods/svs/steel/tata-steel-looks-to-begin-construction-of-eaf-project-in-uk-in-july/articleshow/121704928.cms\n\"We have exited from steelmaking through the end-of-life heavy end assets in Port Talbot, and moved to a downstream model using imported substrate from India, the Netherlands and other external sources,\" an official said. Speaking further on the UK plan, the officials said the structural transition is also accompanied by a significant focus on cost rationalisation as the company plans to bring down its fixed costs further from 762 million pounds in FY2024-25 to 540 million pounds in the coming year. The reductions are based on optimising substrate costs, modernising IT infrastructure, rationalising downstream operations and eliminating corporate overheads. [...] Homegrown Tata Steel is expecting to start the construction of its low-carbon EAF-based steel making project in the UK from July 2025 and commence operations by 2027, top company officials said. The company has received necessary approvals for its USD 1.5 billion project at Port Talbot, Tata Steel CEO & MD T V Narendran, and ED & CFO Koushik Chatterjee said in the company's annual report for FY2024-25. \"We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28, supported by 500 million pounds in the UK Government funding,\" the management said. They said that planning approval has been received for the EAF (electric arc furnace) project at Port Talbot and the construction is expected to commence in July 2025. [...] AbcMedium AbcLarge Save Print Comment Synopsis Tata Steel is set to begin construction of its low-carbon electric arc furnace (EAF) steelmaking project in Port Talbot, UK, in July 2025, with operations slated to commence by 2027. Supported by UK government funding, this initiative transitions Tata Steel from blast furnaces to a low-emission EAF process utilizing l\n\n---\n\nSource: Tata Steel UK’s two-stage transition plan promises historic turnaround\nURL: https://www.fortuneindia.com/business-news/tata-steel-uks-two-stage-transition-plan-promises-historic-turnaround/126299\nTata Steel Ltd• Fortune 500 India 2025 Tata Steel is preparing to implement a two-stage transformation to relaunch operations with a focus on green steel production Credits: Getty Images Google Set Fortune India ✓As Preferred on Google Tata Steel is preparing to implement a two-stage transformation at its UK subsidiary over the next two years, aiming to relaunch operations with a focus on green steel production. The first phase centres on achieving positive EBITDA by reducing fixed costs by £222 million in FY26. The second phase involves commissioning a 3.2 million tonne per annum (MTPA) electric arc furnace (EAF) in 2027, marking a major shift in its steelmaking process. Sign up for Fortune India's ad-free experience Enjoy uninterrupted access to premium content and insights. [...] [Go Ad-Free](/subscription) In FY25, Tata Steel UK (TSUK) successfully lowered its fixed costs to £762 million from £995 million the previous year. The company now aims to bring this down further to £540 million in the current fiscal. Following the closure of its two blast furnaces at Port Talbot, TSUK has transitioned to a downstream model, relying on imported steel substrates—primarily slabs—from India, the Netherlands, and other sources. Cost optimisation efforts include streamlining substrate procurement, upgrading IT infrastructure, rationalizing downstream operations, and eliminating corporate overheads. Despite these reductions, TSUK has maintained delivery volumes at 2.5 MT. [...] People Business Markets Cryptocurrency IPO Stock Market Economy Personal Finance Mutual Funds Banking Opinion Technology Auto Lifestyle Long Reads First Edit Exchange Ideas Buy on Amazon Magazine Annual Subscription Archives Enterprise Investing Macro Infographics Go Ad-Free HomeBusiness NewsTata Steel UK’s\n\n---\n\nSource: NEC4 ECC compensation event assessment – a worked example | News | NEC Contracts\nURL: https://www.neccontract.com/news/nec4-ecc-compensation-event-assessment-a-worked-example?srsltid=AfmBOoqHzwr_kxyqpaLDLEkXzeZvTM7RdekEi4sg-mJ0fZqO9Ho9CWgE\nScenario 1: forecast defined cost of type A shelving is £50,000 | CORRECT ASSESSMENT #1 | | | --- | Forecast defined cost type A shelving (a) | 50,000 | | | Forecast defined cost type B shelving (b) | 80,000 | | | b-a | 30,000 | The impact of the compensation event is to increase the defined cost by £30,000 | | Add fee (10%) | 3,000 | | | (c) | 33,000 | Including the fee, the compensation event is assessed at £33,000 | | Changed activity price | 93,000 | The changed activity schedule price is £60,000 + £30,000 + £3,000 = £93,000 | Without the compensation event, the contractor would have made £10k on this activity compared with its tender (defined cost type A £50k, activity £60k). This position is maintained. Scenario 2: forecast defined cost of type A shelving is £70,000 [...] | CORRECT ASSESSMENT #2 | | | --- | Forecast defined cost type A shelving (a) | 70,000 | | | Forecast defined cost type B shelving (b) | 80,000 | | | b-a | 10,000 | The impact of the compensation event is to increase the defined cost by £10,000 | | Add fee (10%) | 1,000 | | | (c) | 11,000 | Including the fee, the compensation event is assessed at £11,000 | | Changed activity price | 71,000 | The changed activity schedule price is £60,000 + £10,000 + £1,000 = £71,000 | ## Other considerations [...] It may be considered that the above information is sufficient information to enable the compensation event to be assessed. Using only this information, however, would result in an incorrect assessment, as shown by the following calculations. | INCORRECT ASSESSMENT #1 | | --- | | Forecast defined cost (a) | 80,000 | | Current price (b) | 60,000 | | a-b | 20,000 | | Add fee (10%) | 2,000 | | (c) | 22,000 | | Revised activity price (b+c) | 82,000 | | INCORRECT ASSESSMENT #2 | | --- | | Forecast defined cos\n\n---\n\nSource: [PDF] Tata Steel UK\nURL: https://www.tatasteeluk.com/sites/default/files/pimcore_doc/tata-steel-uk-senedd-2026-manifesto-february-2026.pdf\ngoes live Late 2027 Tata Steel UK’s transition to Electric Arc Furnace (EAF) steelmaking is the largest investment in the UK steel industry for decades – cutting emissions by 90%, safeguarding domestic production, and protecting thousands of skilled jobs across Wales and the UK. Since 2007, Tata Steel has invested more than £6.3 billion in its UK operations. In 2024, we committed to a £1.25 billion transformation of our Port Talbot site, backed by £500 million from the UK Government. Our strategic investment places Wales at the heart of EAF steelmaking in Europe and ensures that we harness our own indigenous resources for the future. Of the 10-11 million tonnes of scrap steel generated annually in the UK, approximately 80% is currently exported. By redirecting some of this valuable [...] Tata Steel UK Creating a Secure Future for Welsh Steel A MESSAGE FROM OUR CEO KEY PROJECT MILESTONES 2 Key milestones in the transformation of Port Talbot steelmaking Design and engineering phase 2020 – 2024 Closure of Blast Furnace 5 by end June 2024 Closure of Blast Furnace 4 and wind down remaining heavy end by end September 2024 Upgrades to steel mills and continuous casters Late 2024 – 2027 Planning process for new Electric Arc Furnace Spring 2024 – summer 2025 Electricity connection agreement with the ESO May 2024 Constructing new steelmaking technology Summer 2025 – late 2027 Electric Arc Furnace start-up phase Late 2027 – 2028 £1.25 billion joint investment agreed with UK Government September 2023 New electricity connection goes live Late 2027 Tata Steel UK’s transition to Electric" }