Bizonomics News Desk | June 16, 2025
In a bold move that aligns with global decarbonization goals, Tata Steel is transforming its legacy steelmaking processes to prioritize sustainability and circularity. The company’s CEO & MD, T V Narendran, announced that Tata Steel plans to produce 10–15 million tonnes of steel through the recycling route within the next 10–15 years.
This transition marks a significant departure from the traditional blast furnace-based linear model of steelmaking. The company aims to embrace scrap-based Electric Arc Furnace (EAF) technology and other low-carbon production methods, setting a benchmark for the global steel industry.
From Linearity to Circularity
Tata Steel, one of India’s largest steel producers, is betting big on circular economy principles. According to Narendran, this shift is not merely technological but philosophical. “Linearity to circularity is one shift we are making,” he said, pointing to the company’s strategy to reduce its carbon footprint by embracing recycled materials and green energy sources.
Production Snapshot: FY25
- Total Production: 30.92 million tonnes
- Total Installed Capacity: 35 million tonnes
- Regional Breakdown:
- India: 26 MT capacity
- UK (Port Talbot): 3 MTPA
- Netherlands (IJmuiden): 6.75 MTPA
- Thailand: 1.7 MTPA
Tata Steel has already laid the foundation for this green transition in India, with a recycling facility near Delhi and a 0.75 MTPA recycling-based steel plant in Ludhiana, which is expected to be operational by the end of FY25.
Europe’s Steel Renaissance: Goodbye to Blast Furnaces
In Europe, Tata Steel is phasing out its age-old blast furnaces:
- The Port Talbot plant in the UK has ceased blast furnace operations and is currently installing an EAF unit.
- In the Netherlands, Tata Steel is in advanced discussions with the Dutch government to execute a similar green transformation at its IJmuiden facility.
- By 2035, Tata Steel intends to eliminate all blast furnace operations in Europe, replacing them with alternative green steelmaking technologies.
This transition is not just about environmental compliance—it’s about future-proofing Tata Steel’s global competitiveness. Europe, facing strict carbon regulations and rising emissions costs, presents a compelling case for such a strategic overhaul.
India Remains the Growth Engine
While Europe is going green, India remains Tata Steel’s core growth market. The company plans to expand its domestic capacity to 40 MT by 2030, reflecting the growing demand for steel in infrastructure, automotive, and construction sectors.
The Road Ahead: Sustainability as Strategy
Tata Steel’s ambitious vision to produce up to 15 MT of green steel annually by 2040 places it in the league of forward-looking global majors embracing ESG (Environmental, Social, and Governance) principles.
This strategy could also position Tata Steel favorably in global markets where low-carbon steel is expected to command a premium, particularly in Europe and North America.
Analyst Takeaway
- Tata Steel’s shift signals the decarbonization of a traditionally carbon-heavy sector.
- India’s growing scrap base and policy push for sustainable manufacturing may further accelerate domestic circular steel production.
- European decarbonization efforts, though capital intensive, could help Tata Steel mitigate carbon tax liabilities and unlock green funding.
As the steel industry globally grapples with climate imperatives, Tata Steel is not only adapting—it’s leading.
