Zarah ChoudharyThe UK Government has launched its Plan for Steel Consultation, aimed at addressing long-term challenges facing the country’s steel industry.
The consultation will examine issues such as high electricity costs, unfair trading practices, and scrap metal recycling, with a focus on maintaining jobs and economic stability in steel-producing regions.
As part of this commitment, up to £2.5bn is earmarked to support the sector, including through the National Wealth Fund.
The investment is expected to benefit traditional steelmaking hubs such as Scunthorpe, Rotherham, Redcar, Yorkshire, and Scotland.
Proposed initiatives include advancements in electric arc furnace technology and other improvements to UK steel production capabilities.
This announcement follows Heathrow Airport’s decision to invest in a project requiring 400,000 tonnes of steel, which is expected to provide a significant business pipeline for the sector.
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 £2.5bn to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change.”
The Plan for Steel aims to address challenges facing the sector, as well as ways to expand steel production to support domestic manufacturing, construction, infrastructure, and economic growth.
The consultation will also examine the impact of electricity costs on steel companies, the development of scrap metal processing capabilities, and the transition to electric arc furnace steelmaking, a process that recycles scrap steel to produce high-quality steel and other metals.
An independent review is currently being carried out by the not-for-profit Material Processing Institute in Teesside to assess the UK’s primary steelmaking capabilities and production technologies.
The strategy will also consider measures to protect the steel sector from unfair trading practices abroad and ways to attract and retain skilled talent.
It will aim to align with the Government’s Trade Strategy, Strategic Defence Review, and upcoming Industrial Strategy.
The Government plans to work closely with the Steel Council towards the launch of the Steel Strategy in the spring, with ongoing meetings to encourage investment in steelmaking communities.
Gareth Stace, director-general of UK Steel, said: “Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel.
“The Government’s commitment to our steel sector is both vital and welcome.
“A robust, bold, and ambitious Steel Strategy has the power to reverse the sector’s decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions.
“By setting out a clear business plan and roadmap for investment, the Government can secure a brighter future for our industry, safeguard jobs, and support steelworkers and their families.”
Andy Prendergast, national secretary at GMB, said: “After years of dithering, today’s plan provides desperately needed funding for our once proud, now beleaguered steel industry.
“As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.”
Jon Bolton, steel council co-chair, said: “Publishing a consultation so quickly after the launch of the Steel Council demonstrates the importance the government places on the steel strategy and the important role it plays as part of an Industrial Strategy.
“Thorough consultation is key, with a first round table held with steel consumers chaired by The Industry Minister where future market dynamics were discussed including the demand for Green Steel.
“This work will continue over the coming weeks and I urge all stakeholders to respond to the consultation, with the issuing of the Steel Strategy in the spring a key moment for the sector.”
Roy Rickhuss CBE, community general secretary, said: “After a long era of neglect under the previous government, we welcome the government’s firm commitment to our steel industry.
“The new green paper sets out some of the main challenges and opportunities our steel sector will face over the years ahead – this consultation is an important step towards developing the government’s new steel strategy, and we look forward to engaging with the process at every step of the way.”
