Further reaction to British Steel plans in Scunthorpe

Blast furnaces will be replaced with new electric arc furnaces

Further reaction to British Steel plans in Scunthorpe
Author: Andy MarshPublished 7th Nov 2023

Steelworkers in Scunthorpe are waking up to a sense of uncertainty this morning.

Yesterday major 1.25 billion pound plans were revealed which would see the current coal fired blast furnaces replaced with electric arc furnaces.

That would be a greener option and British Steel says it would make them more competitive but it's thought it could mean up to 2000 job losses.

The company hasn't confirmed that figure but its statement acknowledges there could be redundancies.

As a nation I firmly and passionately believe we must be able to make our own steel

We spoke to Scunthorpe MP Holly Mumby Croft outside the steelworks yesterday.

She told us: "My heart is breaking for people hearing this news and worrying about what it means for them."

"I will continue to work with British Steel and the Government to encourage them to carry on those conversations."

"If British Steel want hundreds of millions of pounds of tax payers money then my view is the Government needs to use that money as leverage to ensure that they protect people's jobs."

"As a nation I firmly and passionately believe we must be able to make our own steel."

Steelworkers are the beating heart of this town

"Whilst there absolutely is a place for electric arc furnaces we also need those blast furnaces to make that primary virgin steel here in the UK."

"I think if we lose that we will rue the day we let that go."

"Steelworkers are the beating heart of this town and we don't say that lightly - it really is the case."

"There are thousands of people here and thankfully they're earning over the average wage for this area."

"So it's incredibly important and does have a knock on affect on the whole economy."

Meanwhile unions have criticised the plans.

There are other technologies out there that we should be looking at

We spoke to Martin Foster from Unite the Union based at the Scunthorpe site.

He told us: "As a union we'll support all our members - we will fight to save every single job."

"Some will say this is what comes with progress - I would disagree with that."

"There are other technologies out there that we should be looking at - it doesn't have to be electric arc - there's other stuff we can use."

"Workers will already be thinking about what the future is - especially if they're young people."

"They're going to be thinking do I hang on for the couple of years it's going to take for this electric arc furnace to be built or do I go now."

Unions believe an agreement on Government support could be some months away

"We've got a job of work to do with the company to come up with a way of retaining those people to keep the plant running."

"That's the biggest fear we have at the moment - retaining those employees to keep furnaces going until the electric arc furnaces are going to be put in - which won't be easy."

"We'll no doubt be having discussions with the company on how we do that - what incentives we put in place."

"There has to be something - we can't just not do anything."

He also told us talks are still ongoing with the Government and British Steel about a possible support package from ministers.

Plans for an advanced manufacturing park at the Steelworks is described as a huge opportunity

He feels that could still be some months away.

Meanwhile plans have been revealed to develop part of the Scunthorpe steelworks site into an advanced manufacturing park.

The project has been backed by both British Steel and North Lincolnshire Council.

It will use up to 3 hundred acres of surplus land to provide locations for tech based companies to set up on the site.

It'll see Government funding and there'd be a focus on "green jobs".

Cllr Rob Waltham, leader, North Lincolnshire Council, said: “There is a huge opportunity to create something new, attracting innovative technology companies and well-paid jobs here to Scunthorpe on an underdeveloped site of industrial heritage.

“The transition to net zero must be through taking opportunity not managed decline - taking advantage of the green opportunities globally while harnessing our engineering skills and capabilities locally is the future.”

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