A new Steel Council has been launched by the government, with objectives including a stronger supply chain for infrastructure projects and support for the UK’s decarbonisation strategy.
The Steel Council – whose members include steel sector leaders, industry experts, trade unions, trade associations and devolved governments – was launched yesterday 7 January, when it held its inaugural meeting.
A press release from the Department for Business and Trade stated: “A secure future for the steel industry is vital to both the UK’s national security and delivering growth, the foundation of the Government’s Plan for Change, and with the launch of the council the government is taking another important step towards safeguarding the sector for the long term.”
A priority for the council will be to support the government as it works towards the launch of its Steel Strategy in spring. The council will continue to meet regularly following the strategy’s publication to help drive investment into steelmaking communities across the country.
In September, the government announced a commitment to spend £2.5bn on steel as part of the National Wealth Fund.
Decarbonisation and supply chain
As well as driving UK jobs and growth, it is intended that the new council will also support the UK’s decarbonisation objectives. The steel industry has in recent years struggled to balance decarbonisation with the economic pressures of global overproduction. While the government has invested in green steel technologies, including electric arc furnaces (EAFs), progress has been hindered by cheaper, carbon-intensive imports from countries with less stringent regulations.
Sizewell C joint-managing director Julia Pyke said Sizewell C welcomed the government’s new steel strategy and said the council “will provide a vital boost to British industry.”
She continued: “We are a proud signatory of the UK Steel Charter and remain committed to maximising UK steel throughout our construction plans, including a £700M steel pipeline over the next decade. Supporting strategic industries like British steel is vital for protecting jobs, strengthening communities, and ensuring the resilience of the UK economy.
“The launch of the Steel Council marks an important step in safeguarding the future of British manufacturing and the UK supply chain for major national infrastructure projects.”
The council will have implications for procurement and aligns with UK Steel’s recommendations for an overhaul of steel procurement for a range of infrastructure sectors including offshore wind.
UK Steel’s report ‘Public Procurement of Steel’ published in November states: “Offshore wind is a prime example of how the green transition can translate into green growth and green jobs for the UK, assuming government foresight and ambition when allocating investment and designing public procurement policy.
“The first wave of offshore wind investment in the UK used insufficient amounts of
steel made in the UK, therefore missing out on greater benefits of local value creation multiplied through the supply chain,” it said.
UK Steel’s report added that it had commissioned consultancy Lumen Energy & Environment (Lumen EE) to carry out analysis which projected that the UK’s fixed and floating offshore wind pipeline, targeting approximately 100GW by 2050, will demand between 21Mt and 25Mt of steel with an estimated value of £21bn.
“The Lumen EE analysis finds that 89% of all the steel that will be required by the offshore wind sector in the UK out to 2050 is steel plate, which the development of the rest of the supply
chain will hinge on. The UK will also need significant tonnages of rebar and tensioning strands (between 2.2 and 2.5Mt between 2026 and 2050). This volume poses an immense opportunity for the UK steel industry to meet domestic demand.
“This demand is concentrated in high-volume components, such as towers and monopiles, which alone represent over half of the total steel demand. The offshore wind supply chain is clearly a growth sector, and this will be the last chance for the UK to capitalise on it.
“If the UK is to make the most of the huge expansion in offshore wind in the coming decades, strategic investment alongside primary fabricating capacity will be needed.
“Through a government industry partnership and a carefully designed procurement policy, offshore wind could be one of the greatest success stories for this Government,” the report said.
Sustainability and resilience
Commenting on the launch of the council, business Secretary Jonathan Reynolds said: “The industry and steel communities have had enough of lurching from crisis to crisis – this government will take the action needed to place steel on a secure footing for the long term. With the launch of the Steel Council, we’re placing workers and local communities at the heart of our plans as we bring forward up to £2.5bn of investment to secure growth right across the country.
UK Steel director-general Gareth Stace said: “The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain. The Council represents a crucial step towards creating a comprehensive Government Steel Strategy – one that lays the foundations for a sustainable and resilient industry.
Materials Processing Institute chairman Jon Bolton said: “I believe the UK has all the essential elements to attract investment into the steel industry: demand, skills, technology, unrivalled research and development and, critically, a supportive government having announced up to £2.5bn of support.
“I see the Council’s task being to develop a strategy that details the core elements of that investment plan and to establish a roadmap towards a rejuvenated, competitive and environmentally progressive industry.”
Membership
The Steel Council’s membership comprises: secretary of state for business and trade (council chair) Jonathan Reynolds; Materials Processing Institute chairman Jon Bolton (council co-chair); minister of state for industry and decarbonisation Sarah Jones; British Steel; Tata Steel; Liberty Steel; Marcegaglia UK; Sheffield Forgemasters; Celsa Steel; UK Steel; the British Metals Recycling Association; the Materials Processing Institute; Warwick Manufacturing Group, Community Trade Union; GMB Trade Union; Scottish Government deputy first minister and cabinet secretary for economy and Gaelic Kate Forbes; Welsh Government cabinet secretary for economy, energy and planning Rebecca Evans and Northern Ireland Executive minister for the economy Conor Murphy.
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