One of Britain’s leading regional mayors, Lord Ben Houchen, has expressed concerns about the future of the UK steel industry. In an interview with The Independent, he raised alarms over the possibility of British-produced steel being replaced by Chinese steel that is being rerouted through Brazil.
Lord Houchen’s biggest fear is the potential closure of the steelworks in Scunthorpe in the North East. He believes that there may be a secret deal in place to shut down the steelworks and import steel from Brazil, which is actually produced in China. This move could have serious implications for the steel industry in the UK.
The Scunthorpe steelworks, currently owned by Jingye, is part of a £1.25bn decarbonisation plan that could result in 2,000 job losses, according to unions. Lord Houchen has accused the Labour Party of breaking its promises to steelworkers and failing to protect the steel industry in the country.
Lord Houchen has been actively working to secure funding for a new Net Zero green energy project at the former steelworks site in Redcar. Despite facing accusations of corruption and cronyism from Labour, he has been able to move forward with the project, which has now received support from the opposition party.
The potential closure of the Scunthorpe steelworks could have far-reaching consequences, impacting not only jobs and the economy but also national security. Steel is a crucial component in the production of missiles, weapons, submarines, warships, and jets. Lord Houchen has highlighted the security risks associated with relying on Chinese steel for these critical applications.
While Lord Houchen has voiced his concerns and opposition to the plan to import Chinese steel through Brazil, he has also criticized the lack of action from Labour MPs in the region. He believes that the government is trying to save money by importing Chinese steel disguised as Brazilian steel, but this move could have detrimental effects on the UK steel industry.
In response to these concerns, the Department for Business and Trade (DBT) declined to comment. However, Business Secretary Jonathan Reynolds has announced a new steel strategy for Britain. The government aims to improve steel capabilities across the supply chain and prioritize long-term job creation over short-term subsidies. Independent experts will also be reviewing the viability of direct reduced iron in the UK as part of the strategy.
Lord Houchen’s warnings about the potential demise of the UK steel industry underscore the importance of safeguarding domestic steel production and ensuring national security. The implications of relying on imported Chinese steel are vast, and the government must carefully consider the long-term consequences of its decisions on the steel industry in the UK.
