Tata Steel’s share price surged up close to 2% to hit a new all-time high of ₹171 on Tuesday.

What Happened: The Tata Group company has signed an agreement with National Grid Plc’s Electricity System Operator to develop power infrastructure for its green steel project at the Port Talbot site. The British grid operator will build the electrical framework needed to power Tata’s 3.2 million-ton electric arc furnace by the end of 2027.

“This will help us replace our ageing and carbon-intensive blast furnaces with a state-of-the-art electric arc furnace capable of producing our customers’ most demanding steel products,” stated Rajesh Nair, chief executive of Tata Steel UK.

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In April, Tata Steel confirmed it would proceed with its planned £1.25 billion investment to build the electric arc furnace at Port Talbot following extensive discussions with the UK’s trade unions, who had raised concerns over potential job losses.

While the new process is significantly greener than coal-fired furnaces, it is also much less labour-intensive. Tata Steel anticipates that 2,500 roles will be affected within the next 18 months due to the transition.

Price Action: Tata Steel’s share price was up 1.70% to trade at ₹170.75 in early trade on Tuesday.

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