In a recent response to a query raised in Parliament, the Ministry of Defence has chosen not to provide specifics on the involvement of UK-based steel companies in defence supply chains. The question, posed by Labour MP Tanmanjeet Singh Dhesi on November 26, 2024, requested details about the number and proportion of steel suppliers considered "critical" to UK defence programmes that are based within the UK. However, Minister of State for Defence, Maria Eagle, sidestepped the direct query, instead offering a general statement about the importance of the domestic steel sector.
Eagle emphasized the significance of the UK steel industry, calling it a “strategic national asset” that is essential for both national security and economic stability. While she acknowledged the importance of suppliers within the defence sector, she did not offer any specific data on the companies that contribute to critical defence programmes. Instead, she reiterated the government’s commitment to supporting the steel industry through broad strategic initiatives.
The Minister highlighted the forthcoming Defence Industrial Strategy, which will align national security and economic priorities, aiming to strengthen and maintain a resilient steel supply chain. Eagle further referenced the government’s upcoming cross-departmental steel strategy, expected to be published in Spring 2025, without delving into specifics regarding the involvement of UK-based steel companies in this framework.
The response from the Ministry of Defence comes amidst growing concerns about the future of steel production in the UK, particularly following the closure of blast furnaces at major steelworks such as Port Talbot and Scunthorpe. In a related exchange, James Cartlidge, MP for South Suffolk, had asked whether the closures would affect the supply of virgin steel, a vital material used in defence manufacturing.
Maria Eagle reassured Parliament that the closure of these blast furnaces would not disrupt the supply of steel critical to defence needs. She stated that the government did not anticipate any adverse impacts on the UK’s defence industry or its access to virgin steel, a critical input for manufacturing military equipment and infrastructure. Despite these assurances, the government has committed to closely monitoring the situation and adjusting its strategies as necessary.
Eagle’s statements highlight the ongoing changes in the UK steel industry, particularly with the shift away from traditional steelmaking processes like blast furnaces to more modern methods such as electric arc furnaces. This transition, part of a larger restructuring plan at the UK’s largest steel plant, Port Talbot, raises questions about the future of steel production capacity in the country and its implications for critical sectors such as defence.
Steel is a foundational material for the UK’s defence sector, used in everything from vehicles and ships to infrastructure and weapons systems. The Ministry of Defence has long recognized the strategic importance of maintaining a robust and reliable domestic steel supply chain to meet national security requirements. However, recent developments in the steel industry, including plant closures and the shift to newer, more sustainable production methods, have raised concerns about the long-term viability of this supply chain.
The closure of blast furnaces at Port Talbot and Scunthorpe, which have historically produced high-quality steel for a variety of industries, is a significant change for the UK's steel landscape. While electric arc furnaces, which are set to replace the blast furnaces, offer a more environmentally friendly alternative, they may not yet be able to replicate the volume or specific characteristics of steel required for certain defence applications. This presents a challenge for the Ministry of Defence in ensuring a consistent and high-quality supply of steel for defence production.
The government’s Defence Industrial Strategy, which is set to be unveiled in the coming months, aims to address these challenges by aligning the needs of the defence sector with broader economic and industrial goals. The strategy will likely focus on securing a stable and resilient supply chain for critical materials like steel, ensuring that the UK’s defence capabilities are not compromised by external supply disruptions.
One of the most significant developments in the UK steel industry in recent years has been the transition from traditional blast furnaces to electric arc furnaces. This change is part of a broader push to reduce carbon emissions and make steel production more environmentally sustainable. The final operation on the last remaining blast furnace at Port Talbot, carried out earlier this year, marked the end of an era in UK steel production. The final usable liquid iron was extracted from Blast Furnace 4, signaling the end of a process that has been integral to the UK’s industrial base for over a century.
Electric arc furnaces, while more sustainable, use recycled steel scrap rather than virgin iron ore, which could impact the production of high-quality steel needed for some defence applications. However, the shift to EAFs is expected to bring long-term benefits in terms of reducing the carbon footprint of the steel sector and improving the sustainability of steel production in the UK. The government is closely monitoring these changes, understanding that any disruptions in the steel sector could have ripple effects on industries that depend on the material for national security and infrastructure needs.
In her response, Minister Maria Eagle emphasized that the government is fully committed to maintaining a resilient and sustainable steel sector in the UK. This commitment is reflected in the upcoming cross-government strategy for the steel industry, which is expected to be released in Spring 2025. The strategy will focus on ensuring that the steel sector remains competitive and resilient, with particular attention to the challenges posed by global competition, environmental regulations, and the shift to more sustainable production methods.
The Defence Industrial Strategy, which is being developed in parallel, is expected to play a critical role in ensuring that the UK’s steel supply chain remains robust in the face of these challenges. The strategy will align the needs of the defence sector with the country’s broader industrial and economic goals, helping to ensure that the UK’s military remains equipped with the materials necessary for its operations.
While the government has reassured the public that the closure of blast furnaces and the transition to electric arc furnaces will not negatively impact defence supply chains, there remains a sense of uncertainty about the long-term effects. The steel industry is undergoing significant transformation, and its ability to meet the specific needs of the defence sector, particularly in terms of virgin steel production, will need to be closely monitored.
As the UK navigates these changes, the importance of ensuring a steady, high-quality supply of steel for defence cannot be overstated. The government’s forthcoming strategies will need to address these concerns and ensure that the UK’s military capabilities are not compromised by shifts in the domestic steel industry. With a growing emphasis on sustainability, resilience, and strategic partnerships, the future of steel production in the UK will likely be shaped by both technological innovation and ongoing government support.
