New plan to secure future for British Steel

Steel unions have unveiled a new plan to secure a future for British Steel in Scunthorpe – the UK’s last remaining blast furnace steelworks.

The proposal, which has been compiled by industry experts Syndex, sets out a pathway towards decarbonisation at British Steel which would involve the continued operation of Scunthorpe’s two existing blast furnaces whilst two new electric arc furnaces (EAFs) are constructed on site.

You can read Syndex’s decarbonisation plan for British Steel in full here.

The plan, which would secure a move towards greener steelmaking whilst maintaining primary steelmaking capacity throughout the transition, would require an additional £200million of UK Government support to mitigate carbon costs in the interim period.

Community General Secretary Roy Rickhuss CBE said:

“The new plan from our experts at Syndex lays out the roadmap towards a just transition for British Steel in Scunthorpe, which is a site of huge strategic importance to the UK as our last remaining primary steelmaking site. Were Scunthorpe steelworks to close, the UK would become the only G7 country without domestic steelmaking capacity – that would represent a huge risk to national security and sovereignty, with the country becoming reliant on dirty imports from overseas. That is not something we should ever be willing to accept.

“The new expert-led proposal for British Steel has the support of all the steel unions, and offers an achievable and potentially profitable solution for decarbonising Scunthorpe, provided that there is an injection of support on carbon costs over the transition period.

“By maintaining blast furnace production whilst new technologies are introduced on site, the new plan for Scunthorpe would avoid the need for a destructive cliff-edge for the workforce, and it provides long-term certainty for the steelworks and the wider community it supports.

“We look forward to engaging with the Department for Business and Trade on this plan. Investment in British Steel would be in keeping with the government’s ambitious growth mission for the country, and its commitment to major infrastructure projects like Heathrow which will need a strong supply of domestic steel.

“We stand at a critical juncture, and we now have an eminently viable opportunity to give Scunthorpe, and UK steelmaking, the vote of confidence it needs and deserves.”

Ian Linklater, Chair of the Multi-Union Committee at British Steel Scunthorpe and Community rep, said:

“The Syndex report represents the best way forward for British Steel. It would provide some stability for all of us at Scunthorpe after a long period of uncertainty, and it would also ensure a steady transition to greener steelmaking which is something we all recognise is needed. We’re still at a really critical juncture here, and we need the company and government to match the ambition of the Syndex plan. There is so much potential at Scunthorpe, and we can’t afford to lose it.”

Community Assistant General Secretary Alasdair McDiarmid said:

“The proposals laid out in detail in Syndex’s independent decarbonisation plan for British Steel are realistic, affordable and sensible. This practical strategy would gradually transition the site towards greener methods of steelmaking in a low-risk way, whilst ensuring that a dedicated, experienced and highly-skilled workforce is not thrown on the scrapheap.

“As the last remaining primary steelmaking facility in the UK, Scunthorpe is a vital strategic asset which we can ill afford to lose. That would be the case at any time, let alone in the current age of global insecurity, conflict, and the spectre of new tariffs. Maintaining blast furnace steelmaking at Scunthorpe over a transition period will ensure continuity of production and supply – that means we won’t have to rely on sourcing imports and British Steel can secure their customer base.

“We stand ready to work with all stakeholders to make this plan a reality.”

Alun Davies, National Secretary for Steel at Community, said:

“Our members at British Steel in Scunthorpe have lived under the shadow of uncertainty for some time now – they want assurances that their jobs, and the steelworks which is such an important feature of the local community, has a long-term future.

“The new report from Syndex sets out a viable plan to secure that future, transitioning the site towards greener methods of steelmaking whilst minimising future job losses. The plan provides the stability our members on site are looking for, and it helps avoid unacceptable risks relating to external supply from British Steel to other steel and manufacturing sites across the UK.

“As a country we need steel for economic growth that extends beyond London and the South East, as well as for our defence and national security. That’s why it’s so important we maintain primary steelmaking capacity at Scunthorpe.”

Sir Nic Dakin, Labour MP for Scunthorpe, said:

“Scunthorpe steelworks is the beating heart of our community, and a future without it is unimaginable and unacceptable.

“The new report from Syndex – which has the support of Community and the other steel unions – shows that there is a viable alternative on the table.

“Steel is essential for our national security and environmental ambitions – you can’t have a greener economy without a healthy UK steel industry. Scunthorpe is an absolutely crucial part of that as the producer of the steel needed for construction and major infrastructure projects.

“We need to take decisions now which will protect and preserve our steelmaking capacity for years to come – we can’t afford not to.”

“It’s vital we have a plan to continue to produce steel in the UK. To do that we need to modernise it and to decarbonise it – so we can compete with the countries who are already investing in modern steel making.

“This plan sets out a clear pathway to make that change. Crucially, it’s a pathway that protects steel workers’ jobs through the transition, and that puts UK steelmaking on a firm footing for the future.”

Linda McCulloch, National Officer for Unite the Union, said:

“The Syndex plan would provide much-needed stability for the workforce at Scunthorpe and secure a just transition and long-term future for this strategically important site. All of the unions are together in recommending this report.”

Charlotte Brumpton-Childs, GMB National Officer, said:

“This plan sets out a roadmap for decarbonising Scunthorpe while maintaining vital primary steel making capacity.

“There are now important choices to be made. We need to reset the narrative around decarbonising energy intensive industries and ensure we secure a long-term future for our steel sector.”