Key Points
- The UK government establishes the Steel Council to secure steelmaking.
- Leaders, unions, and experts collaborate on long-term industry solutions.
- Major investments target electric arc furnace technology upgrades.
The Steel Council was founded by the UK government’s Department for Business and Trade in order to ensure the survival of British steelmaking, which has been beset by persistent difficulties. The council will offer advice on reviving the steel sector and establishing the government’s future steel policy, per a statement released on January 7.
Steel Council formed to tackle UK steelmaking challenges
Tata Steel and British Steel CEOs, trade union leaders, industry professionals, members from devolved government, and trade associations will all be on the council. It will discuss the issues the industry is facing and offer suggestions for long-term fixes. The council intends to convene on a monthly basis while the government formulates its steel strategy, focusing on economic growth and worker goals in its efforts to revive the sector.
The department stated that the council will “ensure that both the workforce and economic growth are at the heart of its plans” and “bring together leaders to secure steelmaking in the UK.”
The initiative was praised by the Community union, which represents steelworkers in the United Kingdom. An industry analyst, however, played down the statement, claiming that “they just agreed to agree.”
Electric arc furnaces replace outdated blast furnace technology
Oil price stated that additional financing for the steel industry was announced by the Labour administration in July, totaling £2.5 billion ($3.1 billion). In addition, Tata Steel has been given £500 million to assist with the installation of electric arc furnace technology at its Port Talbot facility, where two blast furnaces were permanently closed in 2024.
Additionally, British Steel intends to install electric arc furnaces in place of four blast furnaces at its Scunthorpe facility. Since the 19th century, Scunthorpe, which is in North Lincolnshire, has been a vital part of the UK steel industry.
China-based Jingye Steel, the parent company of British Steel, has previously negotiated more than £1.3 billion ($1.62 billion) in project funding with the UK government. Although there were worries in 2024 that Jingye would leave the location, new information indicates the facility will remain getting raw materials to maintain its furnaces.
