A senior government minister has visited British Steel as talks between the company and government on a support package continue.
Business and Trade Secretary Kemi Badenoch was shown on Thursday around British Steel rail manufacturing facilities in Scunthorpe. It is the UK’s only manufacturer of rail, and the overwhelming majority of Britain’s rail tracks are made in Scunthorpe.
The company is seeking further government support for its £1.25bn decarbonisation plans and its president said it is committed to “reaching an agreement quickly”.
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It gained planning permission last month to build an electric arc furnace (EAF) at its Scunthorpe site. Together with an EAF in Teesside, this will replace Scunthorpe’s coke blast furnaces.
During the planning meeting that decided on the Scunthorpe EAF, a British Steel representative admitted fewer jobs will be required. British Steel has started preliminary talks with trade unions about electrification and promised to support employees affected by its decarbonisation plans.
British Steel President and CEO Xijun Cao said: “We were delighted to welcome the Secretary of State to British Steel and to reiterate the vital importance of safeguarding the future of steelmaking in this country. Our world-class rails help transport people and goods throughout the UK, forming a critical part of Britain’s infrastructure.
“We will shortly open a new £10-million rail storage facility at our Scunthorpe site, and we’re unique in delivering 216-metre lengths of rail for installation in Britain’s railways – a service that reduces delays for rail users caused by maintenance.” The company recently secured a lucrative contract to supply rail to Egypt. British Steel’s president added it is the UK’s only manufacturer of constructional steel, and a lead supplier of wire rod, special profiles and semi-finished steel. He said these products keep Britain on the go.
“It is therefore imperative that if Britain wants to secure its sovereign steelmaking capability, the UK Government supports our plans to transform into a clean, green and sustainable business.” British Steel cite detailed studies that show electrification would allow it to continue making the products its customers require.
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Significant preparation works, including environmental and technical studies, and equipment selection, are already underway so the EAF proposals can be delivered at the earliest opportunity, while discussion with the government also continue.
Xijun Cao added: “We are confident our proposals, which are subject to appropriate support from the UK Government including the adoption of the correct policies and frameworks, will help secure the low embedded carbon steelmaking the UK requires now and for decades to come.
“We are committed to working with the UK Government and need to reach an agreement quickly so we can achieve our ambitious goals, secure thousands of jobs and keep making the steel Britain needs for generations to come.” So far, the UK government has offered £300m of support.
Original artice: https://www.grimsbytelegraph.co.uk/all-about/scunthorpe
