The Sunday Times reported this morning (January 12) that British Steel is on the brink of scrapping plans to build a “green steel” arc furnace in Teesside and one in Scunthorpe.
They say that the Government is currently making a deal with the Chinese-owned group to build both furnaces in Scunthorpe, Lincolnshire.
This would be a huge blow for Tees Valley Mayor Ben Houchen who promised in 2020 to bring steelmaking back to the area.
This morning he has written to Teesside MPs calling on them to “ensure Teesside remains at the heart of UK steelmaking”.
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Read the full letter to Tees Valley MPs below:
“This morning’s report in The Sunday Times raises serious concerns about the Government’s emerging deal with British Steel and its implications for our constituents across Teesside, Darlington and Hartlepool,” he wrote on social media.
“The report suggests Scunthorpe will be the sole location for an Electric Arc Furnace (EAF), bypassing Teesside entirely and increasing the time period in which the UK will be without steelmaking capabilities.
“This decision, if confirmed, would be a profound mistake with long-term consequences for our economy, local jobs, and indeed our national security.
“As you know, Scunthorpe’s significant challenges are well reported, including grid constraints and extensive remediation needed. In contrast, Teesside is ready to break ground within weeks, with planning already approved, offering a faster and more efficient solution.
“Prior to the General Election last year, Teesside was in pole position to land this transformational investment. The fact this no longer appears to be the case is hugely concerning.
“Steelmaking is integral to Teesside’s identity, economy, and future. We’ve seen our region lead in industries of tomorrow, such as Net Zero Teesside and SeAH investments on the Teeswork’s site.
“An EAF here would build on this success and secure Teesside’s rightful place in the UK’s industrial strategy. It would represent an investment of £1.25bn, creating 500 jobs and delivering £10million a year in business rates for our local community.
“In 2015, many of you were rightly vocal when SSI steelworks closed. Now, I urge you to act with the same determination. If the reports today are true, I hope you’ll put Teesside above party politics and join me in fighting for our region’s future.
“I have already spoken to the Business Secretary in recent days, but I need your help too. Let’s speak with one voice to ensure Teesside remains at the heart of UK steelmaking. Time is running out.”