A further direct call for support and a level policy playing field with other steelmaking nations has been made by British Steel as it welcomed the Business Secretary to Scunthorpe.
Kemi Badenoch met senior executives from owner Jingye and the British Steel leadership team as the manufacturing giant and government continue negotiations over an aid package.
The visit came just three months after British Steel was admonished in Westminster after proposing redundancies with talks ongoing, when plans to close the coke ovens first emerged. Since that fiery House of Commons debate, 250 jobs have been absorbed across the plant, with the closure set to take place.
Read more: Steelworkers' joy at huge repreive with pay hike looming for 250-strong team
High carbon and energy prices combining with the stuttering economy has made for a challenging time for the business, bought out of compulsory liquidation by the Chinese company three years ago.
A British Steel spokesman said: “We discussed the significant challenges Britain’s steelmakers like ourselves face, and our pressing need for support from the UK Government on our journey to net zero.
“The works, and our sites in Teesside and Skinningrove, are integral to ensuring Britain has the secure supply of high-quality steel it will need for decades to come. British Steel is the UK’s only manufacturer of structural sections and these go into three out of four major construction projects in this country. We are also the only company in the UK which makes rail and special profiles. In addition to this, we directly provide thousands of highly skilled and well-paid jobs while an estimated 19,000 people are employed in our supply chain.
“We are looking to rapidly progress our discussions with the government as our shareholder – which has invested £330 million in capital projects at British Steel in three years – is committed to transforming our business with further planned investments providing the government can give assurances of a competitive landscape for energy and carbon.
“Our decarbonisation strategy is underpinned by our Low-Carbon Roadmap, which will help secure low embedded carbon steelmaking in the UK. However, we need the British government to adopt the correct policies and frameworks now to back our drive to become a clean, green, and successful company. Governments in the countries where our major competitors operate have adopted such policies and the longer we wait for their implementation in the UK, the more impact this will have on our competitiveness and the country's ability to meet its carbon objectives.
“British Steel is committed to working with the government and to making the home-made steel Britain needs for generations to come.”
Following the meeting, Ms Badenoch toured the sprawling integrated works at the headquarters site.
She said: "I was proud to show my support for British Steel and the steel industry in Scunthorpe today. It's been fascinating seeing first-hand the important work that goes on here every day, and Scunthorpe's steelworks’ significance for the local economy, and for our steel industry generally, cannot be overstated.
"It's a crucial time for the industry as our country moves towards net zero and I know steelmakers are working hard to make changes to cut their carbon emissions."
Joining the visit was Scunthorpe MP Holly Mumby-Croft. She said: “I was delighted to have the Secretary of State for Business and Trade at the home of the UK’s world class steelmaking, and I would like to thank British Steel for their warm welcome.
“You cannot separate the future of our town from the future of the steelworks, and Scunthorpe knows more than anywhere else that this is a vital strategic industry for the United Kingdom.
“The meetings we had were constructive, and we touched upon energy costs, the Emissions Trading Scheme and future plans. The visit, along with the work done to date to support our steelworks, shows that the Government cares about the prosperity of our steelworks.
“This has been a difficult time for our steelworks as they grapple with issues such as high energy costs. It was good to show the Secretary of State first-hand how we operate here, and I hope this will be reflected in the negotiations as they continue.
“Now is the time to grasp the nettle and carve out a sustainable future for this vital British industry. I will continue to work with British Steel and the Government, and hope to see the Secretary of State return in the future.”
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