Flue accessories at Tata Steel's Port Talbot site will benefit from a new energy-efficient cooling system as part of a £53 million investment by the company.
This new installation will help to reduce the works' external power requirements by roughly 15 per cent, while assisting in making the site more self-sufficient.
A large part of the work will be completed in the final six months of 2012, which will coincide with the £185 million rebuilding of Port Talbot's number four blast furnace.
Karl-Ulrich Kohler, managing director and chief executive officer of Tata Steel in Europe, said: "This investment is a further demonstration of Tata Steel's commitment to make our steel operations in Wales a benchmark for the European industry."
The decision to build the new cooling system came after the Tata Steel Group completed an examination of best practice at its Port Talbot site.