British steelmakers are being backed today by the Government as the Business Secretary launches the Plan for Steel Consultation.
This will look at the long-term issues facing the industry like high electricity costs, unfair trading practices, and scrap metal recycling – to protect jobs and living standards in the UK’s industrial heartlands.
Government’s Financial Commitment to the Steel Industry
Up to £2.5 billion will be put towards supporting the steel industry, as per the manifesto commitment, including via the National Wealth Fund. This could benefit regions across the UK – like Scunthorpe, Rotherham, Redcar, Yorkshire, and Scotland – which have a strong history of steel production. It will be spent on initiatives that will give the industry a long future – such as electric arc furnaces, or other improvements to UK capabilities.
Simplifying Public Procurement to Benefit the Steel Sector
This week, the Government also simplified public procurement and aligned it with the Government’s missions, including the Industrial Strategy, to put UK firms – like the steel industry - in the best possible position to compete for and win public contracts.
That is on top of delivering a better deal for Port Talbot within weeks of taking office, which will transform production at Port Talbot and deliver a modern Electric Arc Furnace, and implementing the British Industry Supercharger which will cut electricity costs for steel firms and bring prices more in line with international competitors.
Business Secretary’s Statement on the UK Steel Industry
Business Secretary Jonathan Reynolds said: “The UK steel industry has a long-term future under this Government. We said that during the election, and we are delivering on it now. The deal announced by Heathrow this week will secure a strong industry pipeline for years to come - and we are putting the full weight of Whitehall behind the industry to build on this success. Britain is open for business, and this Government has committed up to £2.5 billion to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change."
Key Focus Areas of the Steel Strategy
The steel strategy will help with the issues which have been holding the industry back for too long. It will look at ways to:
• Identify where there are opportunities to expand UK steelmaking to better support UK manufacturing, construction, infrastructure, and growth – and secure UK jobs and livelihoods
• Protect the steel sector from unfair trading practices abroad
• Improve our scrap processing facilities so they can best support the steel-making of the future
• Encourage high usage of UK-made steel in public projects
Addressing Electricity Costs and Improving Scrap Metal Processing
To make the UK competitive globally, the steel strategy will examine the electricity costs for steel companies.
The Plan will also look at ways to improve the UK’s scrap metal processing capabilities, in light of the industry’s ongoing transition to electric arc furnace (EAF) steelmaking, which recycles scrap steel by melting it to produce high-quality steel and other metals.
Assessing Steelmaking Capabilities and Production Technologies
It will assess the UK’s primary steelmaking capabilities and primary production technologies with a commissioned independent review, currently being carried out by the not-for-profit Material Processing Institute, based in Teesside.
The Steel Strategy will also explore what can be done to protect the steel sector from unfair trading practices abroad and look at how it can attract and retain skilled talent in the UK. It will leverage the UK’s world-leading research and development capabilities to support the industry, aligning closely with the Government’s Trade Strategy, Strategic Defence Review, and its upcoming Industrial Strategy.
Government Collaboration with the Steel Council
The Government will work closely with the Steel Council towards the launch of the steel strategy in Spring, and the Council will continue to meet regularly following its publication to help drive investment into steelmaking communities across the country.
