Hundreds of jobs on Teesside have been safeguarded after the Government officially brought British Steel back into public ownership.
Industry Minister and Stockton North MP Chris McDonald visited the Teesside Beam Mill at Lackenby, near Redcar, following the announcement, meeting local management and trade union representatives.
The Lackenby beam mill and British Steel’s special profiles plant in Skinningrove together employ more than 800 people. Asked how workers were feeling following the decision, Mr McDonald gave a simple response: “Relief.”
David Hogg, operations director at British Steel, described the move as “a brilliant day” for employees, the industry and the wider community.
The nationalisation follows months of uncertainty after British Steel’s Chinese owner Jingye walked away from talks over investment in new steelmaking technology and began consulting on the future of the Scunthorpe steelworks. The Government later introduced emergency legislation to protect operations at Scunthorpe, home to the UK’s last remaining blast furnaces.
Mr McDonald said ministers had hoped to reach an agreement to purchase the business directly from Jingye but were unable to agree on a price. He said: “We are not prepared to allow the business to go to the wall. We believe we can be competitive making steel in the UK just like any other country in Europe.”
The Government will appoint an independent valuer to determine the company’s worth and has pledged to pay the assessed value.
During his visit, Mr McDonald also encouraged Teesside management teams to bring forward proposals for future investment. The steel sector has faced growing competition from cheaper overseas imports and rising costs, particularly around energy.
Mr McDonald said the Government had already taken steps to reduce industrial energy costs and had committed £2.5 billion to support the future of the UK steel industry. He described steel as the “bedrock and foundation” of the economy and said public ownership would provide stability while plans for future growth are developed.
The future technology used in British steelmaking remains under discussion.
Tees Valley Mayor Ben Houchen renewed calls for an electric arc furnace to be built on Teesside, arguing it would help secure the long-term future of steel production in the region.
He said: “If we’re serious about protecting skilled jobs across Teesside and securing the long-term future of steelmaking in Britain, then the Government must get on and deliver an electric arc furnace.”
Mr McDonald said decisions on future steelmaking technology should ultimately be based on business and economic considerations rather than politics.
Redcar and Cleveland Council leader Alec Brown welcomed the move, describing nationalisation as “a move in the right direction”.
He acknowledged the challenges posed by global competition but said British steel continued to have a strong reputation for quality.
