The UK’s steelworker union, Community, has issued a cautious welcome to the government’s new vision for steel, but attached a firm condition: the UK must not abandon its “primary steelmaking capacity.” The statement came after Business Secretary Peter Kyle backed a move to electric arc furnaces (EAFs) at Scunthorpe.
Alasdair McDiarmid, the union’s assistant general secretary, said he welcomed the “firm commitment to a just transition.” This language is critical for the union, which fears a repeat of the 2,500 job losses seen at Port Talbot when Tata Steel made a similar switch.
However, McDiarmid’s added condition highlights the central tension in the new plan. EAFs are greener as they melt scrap steel, but they cannot replace the function of blast furnaces, which create virgin steel from iron ore. The union views this “primary steelmaking” ability as a non-negotiable strategic asset for the UK.
The government, which took control of British Steel in April to save 2,700 jobs, is now trying to square this circle. A new steel strategy in December will provide details, but Peter Kyle has already confirmed his support for the EAF transition.
To appease the union and save the capability, the government is considering a separate plant to make Direct Reduced Iron (DRI) using green hydrogen. This could then be used in the EAFs. But with industry sources doubting its financial viability, it’s unclear if this compromise will make the final strategy.