British government launches a review of the country’s steel capacity

The UK government has launched a review of the country’s steel capacity. This was announced by Sarah Jones, MP and Minister of State at the Department of Business and Trade, following the first meeting of the Steel Industry Council.

“One of our first steps was to review the UK’s primary steel production capacity and the viability of primary steel production technologies in the UK,” she wrote on Facebook.

Jones expressed her belief that by partnering with industry leaders and experts, the Council will ensure that views from all parts of the country are taken into account, as well as investments of up to £2.5 billion to ensure long-term growth.

Earlier this year, the government announced the creation of the Steel Industry Council to advise on the recovery of the steel industry and develop a future strategy for the industry, which is due to be presented this spring.

In its latest report, Tata Steel noted that the results of its UK unit were heavily impacted by the closure of its Port Talbot steel production facility on September 30, 2024. In October-December, it fell to zero, and for 9 months of the 2024/2025 fiscal year it amounted to 1.07 million tons.

In turn, British Steel recently told Scunthorpe Live that it continues to purchase raw materials for coke ovens in Scunthorpe, which were planned to be closed prematurely last year. The company is also actively discussing its future with the government.

“We are in ongoing discussions with the government about our decarbonization plans and the future operations of our UK business. While progress is being made, no final decisions have been made,” said a British Steel spokesperson.

Both companies, which are represented in the newly created Council, plan to switch to electric arc furnace steel production.