Claims British Steel will not be able to serve rail markets should it deliver its £1.25 billion switch to electric arc furnace production have been refuted by the business.
Sir Nic Dakin, the former town MP who is hoping to retake his seat, joined Hull and Humber Chamber of Commerce chief executive Dr Ian Kelly in airing concerns over this week’s announcement.
And the one-time All Party Parliamentary Group chair on steelmaking, who sits on the Chamber board, went beyond expressing his fears for sovereignty of production stated by his predecessor in parliament, Holly Mumby-Croft, claiming it could impact existing markets.
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He said: “Electric arc furnaces are used to melt down and reuse scrap steel but the product is not currently as high a grade of steel as that which is made in blast furnaces and can’t produce steel of the required quality for rail and specialist steel used in defence and other applications. Ending the UK’s ability to produce our own virgin steel would leave the country exposed to international markets and the home-grown skills required would be lost to the nation forever.”
Sir Nic had accompanied Labour leader Sir Keir Starmer on a visit to the Scunthorpe works in June. There the party’s plan was laid out with match-funding for the green transition pledged and electric arc production and hydrogen fuel switching heralded as the future.
He continued: “There are big strategic questions for the country and the Government here. Do we want the safety and security that comes from being able to make our own primary steel products in the UK? If so, we need to retain our ability to make ‘virgin steel’ with blast furnaces and transition to a green steel future in a way that sees jobs change, through investment in skills, rather than be lost.
“There is an opportunity for the UK Government to show it is committed to the safety and security of the UK and to invest in high quality jobs in the north by making it clear it will retain the capacity in the UK to make the many primary steel products needed to ensure our future security. This would be good for the country and good for the region.”
As reported, British Steel aims to replace blast furnaces at Scunthorpe with two electric arc furnaces, one in the constituency Sir Nic hopes to regain at the next general election, and one in Teesside. Currently mills in the North East are served from North Lincolnshire.
A British Steel spokesman said: “Decarbonisation is as important to our customers as it is to ourselves, and our detailed research demonstrates electric arc steelmaking will enable us to continue manufacturing the high-quality products our customers demand. Our customers want clean, green and sustainable steel and EAFs would ensure we satisfy their technical requirements.”
UK Steel has also made the case for scrap steel as the raw material, with domestic volumes far exceeding current demand levels, in its backing of the company’s plans.
It is also understood that British Steel’s former French rail plant at Hayange was fed by an electric arc furnace. It is now part of German metals group Saarstahl.
Jobs is another huge concern, with the Chamber citing a “loss of around 2,000” in the transition to the less labour intensive operation. British Steel hasn’t confirmed numbers, but has pledged to support those affected by decarbonisation plans.
Dr Ian Kelly said: “This will present a real challenge to the local community in Scunthorpe. British Steel is a high-quality employer bringing significant spend into the local economy with a strong supply chain locally that this will impact on significantly.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
