‘Sigh of relief’ as British Steel shipments bring lifeline to industry on the brink

It comes after ministers used emergency powers to take control of British Steel after what was thought to be a Chinese plot to sabotage the plant

Steelmaking in Scunthorpe will continue after the government confirmed the arrival of a new shipment of raw materials on Sunday, crucial to helping ensure the blast furnaces at British Steel keep running for the coming months.

The shipment of 55,000 tonnes of blast furnace coke has arrived in the UK to fuel the Scunthorpe plant in North Lincolnshire, and more than 66,000 tonnes of iron ore pellets and 27,000 tonnes of iron ore fines are soon to arrive.

It comes after ministers used emergency powers to take control of British Steel and continue production at the site after what was thought to be a plot to sabotage the Scunthorpe plant by its Chinese owners Jingye.

After a scramble over the Easter holidays to obtain the coal and iron needed to keep the plant going, the company confirmed earlier this week that both the Scunthorpe blast furnaces will continue to operate.

Business secretary Jonathan Reynolds at British Steel’s Scunthorpe plant (POOL/AFP via Getty Images)

Meanwhile, a so-called “salamander tap”, where one of the furnaces would be drained of molten material to safely shut it down, will no longer go ahead, British Steel said.

The latest shipment will allow British Steel workers and their families to “breathe a sigh of relief”, business secretary Jonathan Reynolds said, emphasising that the government is “on the side of British workers and British industry”.

“The action we’ve taken to secure primary steelmaking at Scunthorpe will not only support our national security but help our steel sector supply the construction of the homes and infrastructure of the future, as part of our Plan for Change.

“By securing the raw materials we need to keep Scunthorpe going for the foreseeable future we’ve helped protect thousands of crucial steel jobs”, said Mr Reynolds, who led the government in its take over of the plant.

British Steel has meanwhile appointed more new executives, including an interim chief operating officer and HR director, after ministers passed an emergency law to take control of the company from Chinese owner Jingye.

The arrival of raw materials has secured the continued operation of the site (PA)

Alasdair McDiarmid, the assistant general secretary of the Community Union which represents steelworkers, welcomed the shipments saying they provide “much-needed assurance for our members on site in Scunthorpe”.

He added: “We are grateful to British Steel and the Government for the decisive work they have undertaken to secure a future for the business – we have seen their commitment and dedication first-hand.

“After years of neglect, we now have a UK government which understands the vital strategic importance of steel, and is backing this up with action.”

It comes after British announced earlier this week that it has ended a consultation on up to 2,700 staff redundancies launched in March by Jingye, securing thousands of jobs.

The shipment of more than 55,000 tonnes of blast furnace coke arrived in the port of Immingham from Australia on Saturday aboard the merchant vessel Navios Alegria. It will now be transferred by rail to Scunthorpe.

The shipment of iron ore, in the form of more than 66,000 tonnes of iron ore pellets and 27,000 tonnes of iron ore fines, is due to arrive from Sweden next week.