Minister visit to British Steel in Redcar
New minister for industry Alan Mak visited the site of the proposed electric arc furnace
The new minister for industry said the Government’s support for the steel industry was “stronger than ever” as he visited the site of the proposed electric arc furnace in Redcar.
On his first official visit in the role, Alan Mak toured the site of the proposed British Steel manufacturing facility which was granted approval by Redcar and Cleveland Council last week. Mr Mak said the move marks the “return of steelmaking to Teesside” but in “a greener more sustainable way”.
The former Redcar blast furnace and associated SSI steelworks closed in 2015 with the loss of more than 3,000 jobs. The new electric furnaces recycle scrap steel into new steel, but require fewer workers to keep them going than a traditional blast furnace.
The Department for Business and Trade said it has offered British Steel a “generous” support package including more than £300m to fund the changes of investment at both Teesside and Scunthorpe plants and Mr Mak said discussions with the company were “ongoing”. His tour was part of a three-day trip, which also included visits to Celsa Steel in Cardiff and the Tata Steel plant in Port Talbot in South Wales.
It follows protests in Scunthorpe after unions claimed up to 2,000 jobs were at risk under plans to replace blast furnaces there with an electric arc furnace. They say Government policy puts the country’s ability to manufacture virgin steel at risk.
The minister said his visit to the site at Lackenby reflected the Government’s “strong commitment” to the steel sector, which he said would be a “priority” in his role. “This is my first visit as the new minister for industry and I’ve chosen to come to support the steel sector and Teesside steelworks,” he said.
“It was great to meet many of the people involved in the steelmaking process here and see their passion and commitment. I have a very strong interest in the steel sector with family connections to it – my father in law is a former British Steel worker as was his dad.”
He said the Teesside furnace was “a huge opportunity” for the site and wider Freeport. “My strong message is this is a big step forward for Teesside where there is a long, proud tradition of steelmaking,” he added.
Unions have criticised Mr Mak’s visits to the steel plants, accusing of him of failing to speak with steelworkers affected. Alan Davies, national officer for steel at steelworkers’ union Community, said: “Perhaps that’s understandable, as our members would have told him what they think of his government’s approach to steel.”
Community assistant general secretary, Alasdair McDiarmid, said: “For all his warm words this week, the minister will know that his government have fallen short and failed our steel industry at every turn. The supercharger has been a massive disappointment, and our steel producers are still not getting a level playing field when it comes to energy costs. Support to help the industry decarbonise has also been piecemeal at best, paling into insignificance in comparison to what other governments in Europe are investing.”
A Unite spokesperson said: “We welcome the news about the electric arc furnace in Teesside, but this must not come as a detriment of British Steel jobs in Scunthorpe. Other countries are keeping their blast furnaces open during the transition to green steel.
“This protects jobs and allows their nations to retain the ability to make their own virgin steel, which is important to national security. Rather than PR visits, the government should be focussing on ensuring the future of the UK steel industry and scrapping their present policy which will end our virgin steelmaking capacity.”
And Andy Prendergast, GMB national secretary, said: “Steel needs to be more than a photo op – this vital industry needs real support from government to secure its future. In an increasingly dangerous and volatile world – the UK can’t lose its ability to make virgin steel.”
The detailed design of the electric arc furnace at Teesside is yet to be finalised and will be subject to further so-called reserved matters approval at a later stage and support from the Government. Meanwhile, British Steel’s plans for the Scunthorpe site are set to be decided by North Lincolnshire Council.
British Steel president and CEO Xijun Cao said: “The proposed installation of EAFs in Scunthorpe and Teesside is central to our journey to a green future as they would help us reduce emissions of CO2 by more than 75 per cent. However, it is crucial we now secure the backing of the UK Government.
“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.”