Business Secretary Jonathan Reynolds said crucial shipments of iron ore and coking coal are on their way to the Scunthorpe steelworks in a tense race against time
British Steel workers are able to breathe a huge sigh of relief as the Scunthorpe plant edge closer to being saved.
The Government confirmed vital raw materials had been secured to keep the steelworks open after a tense race against time. Business Secretary Jonathan Reynolds confirmed that iron ore pellets and coking coal – which will prevent the site’s two blast furnaces from failing – have arrived from the US.
These will keep the furnaces running for the coming weeks while more materials can be secured. Mr Reynolds also confirmed a separate ship is on its way from Australia filled with iron and coal.
This vessel was the subject of a legal dispute between British Steel and its Chinese owner Jingye, but this has been resolved. Mr Reynolds said: “We will always act in the interest of working people and UK industry.
“Thanks to the work of those at British Steel, and in my department, we have moved decisively to secure the raw materials we need to help save British Steel.”
He said demand for UK-produced steel is set to shoot up, with 1.5million homes as well as railways, schools and hospitals on the horizon during a “decade of national renewal”. Mr Reynolds will travel to Immingham in Lincolnshire today(TUE), where the materials have been waiting in the dock.
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He confirmed that the Government had paid for them using existing Department for Business and Trade (DBT) budgets. No10 had earlier said it was “confident” that vital materials needed to keep the plant operational would arrive on time to save 2,700 jobs at the plant and more than 30,000 in the supply chain.
It comes as the clock ticks in the battle to stop the two blast furnaces on the site from cooling to the point they become unusable. Deputy Prime Minister Angela Rayner last night(MON) visited the site, where she hailed a “crucial step” in saving the steel industry.
Downing Street said two vessels were docked in Lincolnshire while a third shipment was yesterday(MON) on its way to the UK, with the PM’s team saying it was “off the coast of Africa”. Ms Rayner struck a note of optimism after an extraordinary three days.
She said: “We’re confident that we’ve got the raw materials and these furnaces will continue to be fired, and that was really important for the future of British Steel, and the Government stepped in and took the action that was necessary.
“Yes, there’s more that we need to do over the next coming months and years, but this was a crucial step forward for British Steel in the UK.” Pressed on whether the Government had paid for the materials, she added: “We’ve got the raw materials they’ve been paid for, and we’re confident that the furnaces will continue to fire.”
But she refused to say when the crucial shipments would arrive. People working at the Scunthorpe plant feared the worst last week when it emerged British Steel’s Chinese owners, Jingye, had no plans to order coal and iron to keep the plant going.
Ministers hastily drew up legislation to wrestle control of the company from the firm, and MPs were ordered back to Westminster on a Saturday during recess – a highly unusual move. But tensions simmered nearly 200 miles away when a delegation from Jingye – which has links to the Chinese Communist Party – tried to enter the offices, sparking a dramatic standoff.
Employees mounted a “heroic” move to block the executives, fearing they were trying to close the steelworks – which has been at the heart of the town for generations. In a matter of hours the Commons and Lords pushed through the Steel Industry (Special Measures) Bill, which was signed into law by the King in the evening.
It sparked jubilant scenes, and Keir Starmer rushed up to Scunthorpe to meet anxious workers. But despite the landmark legislation, which stops short of nationalising British Steel, it would have been for nothing if the materials were not secured swiftly.
Yesterday Keir Starmer’s official spokesman said the iron and coal would get there “in the coming days”. He said “There are two ships docked at Immingham (in Lincolnshire) containing iron ore pellets and coking coal.
“There’s a third ship which is currently en route, off the coast of Africa, which will be making its way to the UK as well. We’ll be working with the management to identify what further raw materials are needed to keep the blast furnaces operating.”
The Government has accused Jingye, which took over British Steel in 2020, of not acting in good faith. But No10 stopped short of accusing it of sabotaging the Scunthorpe plant, the last site in the UK producing virgin steel.
The PM’s spokesman said ministers are “not aware” of any deliberate sabotage, but said the owners had “made it clear” they would not be ordering the coal and iron ore. Mr Starmer himself headed off on a holiday with his family, having delayed his departure to deal with the steelworks crisis.
While the emergency intervention secures the short term future of the plant, its long term future remains in question. The Government wants to work with the private sector, but Business Secretary Jonathan Reynolds admitted at the weekend that nationalising British Steel is the most likely outcome.
Andy Prendergast, national secretary at the GMB union, said yesterday(MON): “Where we are at the moment is that we’re confident that the deal being done with the raw materials, and the steps being taken will get there on time, and ultimately that has the potential to preserve the future for the plant.
“There still needs to be… a deal to be done for the future, whether that’s our preference – which is nationalisation of what is a key national asset – or whether that’s a genuine private investor who’s willing to come in and put the money. I think for us the key thing is that we keep this plant going and keep virgin steel-making capacity in the UK.”
Asked about an expected timeline for getting the material in, Mr Prendergast said: “We’re being told it’s going to come in good time, so we’re… hopeful that it’s the next 48 hours but we haven’t had confirmation of that.
“However, we believe the steps taken would be meaningless if there weren’t the logistics in place to get it to the plant on time.”
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