The UK government is pushing for urgent measures to ensure the future of British steel as Secretary of Business and Commerce Jonathan Reynolds travels to Imingham today to oversee the unloading and delivery of critical raw materials.
Raw materials arriving from the US will be transported to the British Steel site, and the explosion furnace is expected to continue running for the next few weeks.
This intervention follows a critical government move to resolve material payments, allowing operation to continue while a long-term supply strategy is established.
Delivery of raw materials will resume
Shipping of raw materials from the US contains enough critical materials to maintain production, but authorities continue to work 24 hours a day to establish a consistent, reliable supply chain.
The second ship, currently on the way from Australia, carries more coking coal for the steel manufacturing process.
That Australian cargo was at the heart of a legal dispute between British Steel and its parent company, Jingye over the weekend. However, this has been resolved.
Material payments are made using existing Department of Business and Trade (DBT) budgets.
After intensive work over the weekend, the government has secured cola and iron ore pellets for the explosion furnace, and is confident that there is enough material to burn the furnace.
Unprecedented laws to ensure the future of British steel
Amidst the historic move, new laws passed over the weekend give the government an unprecedented power to directly intervene in the UK’s steel business.
The law allows pastors to direct the company’s board of directors, ensure staff are paid and order the critical raw materials needed to operate the furnace.
If necessary, the government can intervene to implement these actions.
The emergency law aims to protect up to 37,000 jobs across the steel supply chain, supporting the broader national infrastructure goals outlined in the government’s plan of change.
Appointment of stability leadership
To support continued operations and provide expert leadership during this critical period, the government has appointed Alan Bell as interim chief executive and Lisa Coulson as interim chief commercial officer. Both appointments take effect immediately.
These leadership changes are designed to provide stability, direction and industry expertise, but the government will work closely with stakeholders to stabilize and maintain production of UK steel.
Commitment to the UK industry
On Monday, Jonathan Reynolds, Secretary of Business and Trade, highlighted the government’s continued commitment to supporting UK industry and protecting jobs.
“We will always act for the workers and the UK industry. Thanks to the work of British Steel and people in my sector, we have moved decisively to ensure the raw materials needed to save British steel.”
Reynolds highlighted the important role steel plays in national development. “Our industry relies on British steel and demand will be fired up thanks to plans for change.
Government actions demonstrate important interventions to stabilize UK steel mill capacity, indicating that they are ready to protect key national industries during periods of uncertainty.
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