Protecting Steel in the UK

Nia Griffith Excerpts

Tuesday 23rd January 2024 Commons Chamber

[Dame Nia Griffith (Llanelli) (Lab)]

It is both tragic and shocking that we are faced with the potential closure of the last blast furnace in Port Talbot before greener technologies for producing primary steel are developed and operational, and even before the proposed electric arc furnace is up and running. This Conservative UK Government must bear their share of the responsibility for this appalling situation. The Government boast about the grubby little deal they made with Tata in September, spending half a billion pounds to lose 2,800 jobs in Port Talbot and leave the UK as the only country in the G20 without its own steelmaking capacity, at the mercy of world markets with the risk of price hiking, not to mention the national security risk of losing our own primary steelmaking capacity.

Instead, the Government should have been negotiating a proper deal such as the multi-union plan to ensure a just transition. They should have been protecting jobs, keeping the blast furnace going until other production means are fully up and running, and recognising that the electric arc furnace can only be part of the solution. Yes, let us recycle more steel in the UK, but we must recognise that that is not suitable for all our needs. We should also be developing green technologies such as hydrogen and direct reduction of iron to do the primary production of steel, as Labour has proposed, committing £3 billion—not half a billion—to work with the industry to make that just transition a reality.

The tin plate industry is synonymous with Llanelli. It is a central part of our industrial history, and today’s Tata plant in Trostre makes a range of different materials that go on to be used in things like food cans and aerosols. Currently, we receive our steel from Port Talbot, just some 20 miles down the railway track, which makes good economic and environmental sense. Tata tells us that when it closes the blast furnace, we will be importing steel. That imported steel will be made in blast furnaces abroad, so there will be no saving in carbon emissions—quite the opposite. Processes abroad will be much dirtier, and then of course there are the costs and emissions from transporting the steel to Trostre. The challenge will be sourcing an appropriate quality of steel to satisfy Trostre’s needs, and as Trostre makes a number of products and serves a number of different customers, that means steel of the right quality to satisfy all those needs.

We will be very much more vulnerable to logistical difficulties and price fluctuations if we have to import steel. If there is a shortage of supply, foreign producers may well prioritise their home customers.

As for the recycled steel produced in the electric arc furnace, when it eventually comes into production, there is still a lot of work to be done to assess its suitability for the different products that Trostre produces and its acceptability to our customers. It may be that some products can use electric arc furnace steel, but that will depend on the quality of the feedstock that is put in, and there is a strong case for having two smaller electric arc furnaces to provide those different qualities. Then there is the challenge of sourcing the feedstock, and not just sourcing it, but sorting it and trialling it. All this takes time.

In the meantime, we need Tata to keep the blast furnace going. The electric arc furnace should be only part of the solution, the other part being the development of green primary steel-making. I pay tribute to the trade unions, and we now need Tata to work with the trade unions—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Could Members shave time off their speeches, otherwise not everybody will get in?