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Industry body welcomes British Steel investment with reassurance over primary production fears

The UK’s leading industry body has heralded British Steel’s £1.25 billion plans to clean up production as “a vision for new, modern steelmaking”.

Under the proposal, announced yesterday, electric arc furnaces would replace Scunthorpe’s traditional blast furnaces, reducing emissions by around 75 per cent. However, the significantly less labour intensive operations would lead to major redundancies, it has been claimed.

British Steel has not put a number on potential job losses, but pledged to support those affected. Unions have estimated that between 1,500 and 2,000 of the 4,500-strong UK workforce could go. The plan would see new furnaces installed in Scunthorpe and Teesside – with mills there currently served from the North Lincolnshire headquarters – though it does hinge on government support.

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UK Steel director general, Gareth Stace, said: “With British Steel’s announcement, it is clear the UK steel sector is completely committed to rapid decarbonisation. Just one year after publishing the sector’s Net Zero roadmap, the UK’s major steel producers are taking crucial steps to decarbonise by 2035.

“UK steelmaking needs to compete on the world market and regain market share at home and abroad. This is a turning point for UK steelmaking. During this transition, we must all work together in partnership with industry, Government and trade unions to ensure the future of our sector.

“As we switch to electric steelmaking and cut our emissions, planning regulation snags and high electricity prices must not hold back investment in new EAF capacity. It will not be a straightforward transition, but for the whole steel sector, from existing electric furnaces to companies making huge investments now, our goal is clear.”

UK Steel’s Net Zero Steel – A Vision for the Future of UK Steel Production report set out the sector’s roadmap to meet Net Zero targets last year. It detailed how the sector could rapidly reduce emissions, attract new investment into the UK, and ensure green steel production in the UK – essential for new rail, electric vehicles, wind turbines, and energy-efficient housing.

And the organisation has headed off concerns about primary steel making capability losses, flagged by both unions and Scunthorpe MP Holly Mumby-Croft.

It said available scrap far outweighed UK demand and should be seen as an increasingly important resource. A report is being prepared by UK Steel to address the issue, and will likely outline the volumes.

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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