British Steel is vital to UK economy

As you can see from the photograph we are literally yards away from British Steel HQ in Scunthorpe.

Back in 1983 (the year my family started SC4) we relied 100% on the local works for our business, whereas now in 2023 the figure is 0%.

Back in 1961 (the year my father moved his family up to Scunthorpe) the works employed over 30,000 directly, with another estimated 20,000 in their supply chain.

Nowadays there are 3500 directly employed at British Steel Scunthorpe, with another 2,000 (est.) in their supply chain.

With the latest news surrounding the planned closure of the 4 Queens (Anne, Bess, Victoria and Mary) and the stated job losses of 2,000, it looks very much like the final death throes of an ancient relic of heavy industry. Certainly the UK steel industry has been in an apparent managed decline over the last few decades (under both political parties time in power) with little appetite for a rescue.

And to the vast majority of the UK public, it seems a foregone conclusion that our indigenous steel industry is long overdue it's demise...and that it isn't going to be missed, as the Global Supply Chain and market forces will ensure it's product will be smoothly replaced by foreign countries and conglomerates.

The plan to replace the UK's Blast Furnaces with Electric Ladle Arc furnaces is being touted as the way forward, another glorious step in the Green initiative and war against carbon emissions. That is true to a degree but not the whole answer. This "Green Steel" can only be produced by having to rely on having the best quality new production scrap (with fully traceable Mill Test Certificates as supplied by the Rolling Mill to guarantee metallurgical properties) alongside CHEAP AND RELIABLE electricity. The UK energy suppliers are currently the most expensive in the Western World and show no signs of reigning in their blatant profiteering and short term allegiance to greedy (mainly foreign) stakeholders and investors. The DNO, responsible for the UK Power Grid expansion and maintenance, are an unregulated Monopoly and do nothing to assist any new connections to the Power Grid...hence the slow rollout of the vital EV charging network. British Steel will be at the back of the queue for sure.

But even if these major obstacles were to be overcome, there would still be an issue with relying on Green Steel production alone. Certain Higher Grade steel needs to be produced by way of a Blast Furnace only. Rail (a growing market with HS2 and the overdue replacement of the UK rail network), Shipbuilding, both MOD and Civilian craft, demand best quality plate and special sections, Nuclear, Energy and Precision Engineering also require highest quality steel. Do we really want to be held hostage by market conditions and foreign mills for such vital industries...like we saw following the Ukraine conflict which saw plate prices quadruple and sections triple in price. The result is the current cull in the construction sector who had to complete legacy contracts during such febrile supply prices, with many now having severe cashflow issues.

So what is the answer? In my honest opinion there is no single option, a silver bullet to slay the wolf at our door. certainly we can install, at great expense, some ELA furnaces (one in Scunthorpe certainly) to run alongside several Blast Furnaces (as you need to have at least one on standby for when the other is overhauled). That way we will protect the UK steel supply while maintaining the high value jobs and experience so necessary for a viable and healthy steel industry...and maintain full control over our Sovereign interests in Heavy Industry and MOD needs. And then we need to regulate and remove the vultures from the UK Energy Sector and Infrastructure. That will be the real battle I fear.

All of which is doable, given the right appetite and integrity from our political leaders. Our local MP, Holly Mumby Croft, is from a family of steelworkers and is calling out the Tory Government for their blasé attitude. The local population must join the fight and make their opinions count. I even had a meeting with Unite Union representatives doing the rounds in Scunthorpe, and we all agreed on what needs to be done. So when a Tory MP, Union Rep and a capitalist pig (That's me apparently) can put aside our political and cultural difference to join forces in the good fight...then why can't you?

#westandforsteel

#saveoursteel