The UK government’s Department for Business and Trade has set up a committee called the Steel Council to secure long-term steelmaking in the country, where the steel industry continues to struggle. According to a January 7 statement from the ministerial department, the new council will provide advice on rebuilding the sector as well as its upcoming steel strategy.
The department noted that “The Council will bring together steel sector leaders such as CEOs from Tata Steel and British Steel with trade union leaders, industry experts, devolved government representatives and trade associations to address the challenges facing the steel industry and make the changes needed to secure steelmaking in the UK.”
Government and Industry Unite for Steel’s Revival
Representatives added that the department “will meet regularly as the government prepares to launch its steel strategy, providing a vital link between industry, workers, experts and government in every part of the UK and ensuring that both the workforce and economic growth are at the heart of its plans to rebuild the steel sector.”
The Community union, which is associated with steelmakers in the UK, also expressed its support for the strategy. However, one industry watcher played down the event, stating that it sounded as if “they just agreed to agree.”
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UK Government Already Heavily Tied to Steel Industry
In July, the UK’s Labour government announced that it had earmarked an additional £2.5 billion ($3.1 billion) for the steel sector. This is in addition to the £500 million it pledged to help Tata Steel to install new electric arc furnace technology at its Port Talbot works. The Welsh site permanently took down the two operating blast furnaces on site in 2024.
Longs producer British Steel also aims to replace the four blast furnaces at its Scunthorpe site with electric arc furnace technology. That site is located in North Lincolnshire, and has been a cornerstone of the UK’s steel industry since the mid-19th century.
In 2024, British Steel’s parent company, Beijing-headquartered Jingye Steel, held talks with the UK government over the amount of aid the steel plant would receive towards the project, which carries a tentative price tag of £1.3 billion ($1.62 billion).
This raised concerns then that Jingye would withdraw from the site. However, local reports from late 2024 and January indicate that the plant will continue to receive raw materials to keep its blast furnaces operating.
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