Plans for a new electric arc furnace in Teesside, aiming to replace jobs lost when the area's steelworks closed, have reportedly been scrapped. This news has sparked concerns from local leaders who warn that the UK could become increasingly reliant on imports from China and India. The Chinese-owned British Steel is poised to build two new furnaces in Scunthorpe, Lincolnshire, instead, as part of a £1.25bn decarbonisation plan. While these furnaces will be less carbon-intensive, they are expected to require fewer workers, potentially exacerbating job losses in the Teesside region.
There were hopes that an electric arc furnace would help replace jobs lost when Redcar's steelworks closed almost a decade ago. Scrapping the return of steelmaking to Teesside would risk leaving the UK needing to increase imports from China and India, the area's mayor has warned.
The Chinese company behind British Steel, Jingye, is poised to ditch its plan to build an electric arc furnace (EAF) at Lackenby, near Redcar, in Lincolnshire, rather than one in each location, although British Steel said it had not yet made a final decision. The two new furnaces are set to replace British Steel's blast furnaces in Scunthorpe as part of a £1.25bn decarbonisation plan. Unlike blast furnaces, EAFs use scrap steel as the raw material which means they are less carbon intensive. They are also likely to need fewer workers, experts say.Lord Houchen is dismayed by reports Teesside will miss out on a new arc furnace. Reacting to the news that the plan appears to have been scrapped, Lord Houchen told the BBC: 'For whatever reasons, whether it's pressure from unions or politicking, it looks like Teesside is now playing second fiddle with the priority being building the furnaces in Scunthorpe. 'You can build an electric arc furnace on Teesside and start building tomorrow because it's got planning permission. 'What we're going to see is a break in the production of primary steel making in this country. We're going to be exposed to imports from India and China. 'There's a real risk not only do we lose thousands of jobs in Scunthorpe and not create hundreds of jobs on Teesside, but we're also going to see China and India putting political pressure on the UK, which has got huge national security implications.'Lord Houchen criticised six local Labour MPs who he said had welcomed the investment in Scunthorpe 'to the detriment of Teesside' - a stance he described as 'gobsmacking'. Those MPs - Redcar's Anna Turley, Middlesbrough and Thornaby East's Andy McDonald, Stockton North's Chris McDonald, Hartlepool's Jonathan Brash, Middlesbrough South and East Cleveland's Luke Myer and Darlington's Lola McEvoy - hit back in a letter. They said: 'This government sees steel not as a sunset industry to be outsourced abroad, but as a vital sector with a bright future at the forefront of low-carbon and green innovation. 'We understand the government's determination to secure steel jobs in Scunthorpe through the electric arc furnaces.'Teesside's case for an EAF is incredibly strong, and we are committed to pushing for its inclusion in the next phase of the steel strategy.'A British Steel spokesperson said: 'We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business.A Department for Business and Trade spokesperson said the government would 'simply not allow the end of steel making in the UK'. He added: 'That's why we've committed up to £2.5bn of investment to rebuild the UK steel industry and support communities now and for generations to come. 'We're working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that's right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain.
Economy STEEL INDUSTRY DECARBONISATION ELECTRIC ARC FURNACE JOBS UK ECONOMY CHINA INDIA BRITISH STEEL TEESSIDE SCUNTHORPE
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