Tata Steel has started construction of a modern facility for recycling metal in Wales.
The Indian multinational began works today on the site of the electric arc furnace in Port Talbot.
Ministers last year pledged £500 million for the project, which was approved by local councillors in February.
Tata Group chairman Natarajan Chandrasekaran said getting construction underway was “a proud day” for the company “and the UK”.
“Today’s groundbreaking marks not just the beginning of a new electric arc furnace, but a new era for sustainable manufacturing in Britain,” he added.
“At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation and demonstrating our commitment to responsible industry leadership.”
Set for commissioning at the end of 2027, the new facility is expected to save 5 million tonnes of carbon dioxide per year compared with traditional methods. Tata said last year that the furnace would use UK-sourced scrap to produce new steel.
Welsh secretary Jo Stevens said: “The UK government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community.”