Tata Steel and JCB Sign Landmark Agreement for Low-CO₂ ‘Green’ Steel Supply

Image Credit: Tata Steel UK

Tata Steel UK has signed a memorandum of understanding (MoU) with construction equipment giant JCB to supply low-CO₂ 'green' steel. This partnership marks a significant milestone as Tata Steel progresses with its ambitious transformation plans.

The agreement ensures that Tata Steel will supply JCB with green steel produced at its Port Talbot facility. Once available, the steel will be integrated into JCB’s machinery range, aligning with the construction leader’s commitment to sustainability and reducing emissions across its supply chain.

This collaboration is the first major supply agreement announced by Tata Steel UK following its landmark £1.25 billion joint investment with the UK Government. The investment aims to revolutionize South Wales’ steel production through the construction of a three-million-tonne-per-year electric arc furnace (EAF)—a cutting-edge alternative to the traditional blast furnace process that delivers significantly lower CO₂ emissions.

With the EAF project spearheading Tata Steel’s transition to greener operations, the partnership with JCB underscores a shared vision for decarbonization and sets the stage for a more sustainable construction industry.

Anil Jhanji, chief commercial officer at Tata Steel UK, said: "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. 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."

Tata Steel said it intends to make Port Talbot one of Europe's 'premier centres' for green steelmaking.

However, the closure of the traditional blast furnaces at the site is resulting in the loss of nearly 2,000 jobs.

Wayne Asprey, group purchasing director at JCB, said: "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. 

"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."