Union urges investment to make UK’s only plate steel mill a ‘world leader’

The UK’s only plate steel mill needs investment to allow it to become a “world-leading producer” of a key component for offshore wind turbines, trade union leaders have said.

A new report from the Community trade union made the case for  investment in the Dalzell steelworks in Motherwell, which is currently the UK’s only plate mill.

Union leaders said the site is of “huge strategic importance and potential”, and it could be vital in supplying material for offshore wind turbines.

Community’s Steel Reforged report highlights how 90% of the metal required for offshore wind technology is steel plate, and calls for “investment and upgrades” at the Dalzell site to “enable it to meet this significant demand”.

The offshore wind sector is expected to require between 21 million and 25 million tonnes of steel by 2050.

The report said: “We do need a modern plate mill and the first priority should be upgrading our existing plate mill at Dalzell in Scotland.

“A modern plate mill would allow us to build the steel that is necessary for offshore wind turbines.”

The union  published the report as the UK Government prepares to announce its steel strategy and its wider industrial strategy, both expected in spring 2025.

Community also wants government action to either mandate or incentivise the use of UK-made steel in energy, defence and infrastructure-related projects.

To further help the sector, the union also called for government action to bring down industrial electricity prices for steelmakers in the UK, so these are in line with lower costs paid by competitors in France and Germany

The steel industry currently provides more than 33,000 jobs across the UK, and the report says the sector “contributes £2.3 billion to the UK economy and £3.4 billion to the UK’s balance of trade”.

Community general secretary Roy Rickhuss said: “It’s no secret that Dalzell works has endured a number of struggles over recent years, and there is still real uncertainty amongst the workforce and in the wider community about what the future will hold.

“In our new Steel Reforged report we make the case that Dalzell has huge strategic importance and potential, and that with the right investment it could become a world-leading producer of the plate mill required for steel turbines, as well as meeting demand for procurement in other areas, including the defence sector.”

Mr Rickhuss continued: “There is huge potential for our steel industry in the years ahead.

“The UK Government’s commitment to investing in infrastructure and growth, and the wider path towards a greener economy, will require enormous amounts of steel product.

“At Community, our argument is that we should be making that steel here in the UK, supporting thousands of well-paid jobs right across the country and investing in the skills and experience that we have in our world-class steel workforce.”

Mr Rickhuss said their report “lays out a road map for how we can revitalise our steel industry over the years ahead”.

And while he accepted “there will be challenges ahead” he also said there were “huge opportunities on the horizon”.

He continued: “The Labour Government has shown its ambition for the steel sector by earmarking £2.5 billion to help the industry decarbonise.

“We welcome this, and now urge ministers to go even further by placing steel at the heart of a national industrial strategy fit for the future.”

A UK Department for Business and Trade spokesperson said: “This Government will not allow the end of steel making in the UK.

“That’s why we’ve committed up to £2.5 billion of investment to rebuild the industry and our Plan for Steel consultation, launched last month, will examine the long-term issues facing the industry.

“Decarbonisation must not mean deindustrialisation, and we’re exploring all options to help us achieve a green steel transition that delivers on our Plan for Change, protecting the workforce, taxpayers and industry.”

Meanwhile, a Scottish Government spokesperson said: “The Scottish Government acted at pace in 2016 to support a transaction involving Tata Steel and Liberty House to ensure steel communities in Scotland had a future. This saved the Dalzell and Clydebridge steel works, rescued more than 100 jobs and retained steel plate production in Scotland.

“The Scottish Government maintains regular engagement with the plant owners, the UK Government and other partners, and will continue to make sure that the interests of the workforce is protected at all times.”