Tata Steel UK is considering acquiring a recycling company to secure a steady supply of scrap for its planned transition to an electric arc furnace. Over the past year, Tata has reviewed potential acquisition opportunities and even made a bid for at least one UK facility.

This move is seen as a strategic step to ensure a reliable scrap supply, which is crucial for their future operations. The UK exports around 10 million tonnes of ferrous scrap annually, but domestic supply has become more challenging to secure.

Tata’s shift to electric arc furnace steelmaking by 2027 will increase its scrap requirement to 2-2.5 million tonnes per year.