At the 2024 "Shaping the Steel Strategy" summit, industry leaders, policymakers, and experts gathered to discuss the future of the UK steel industry. They identified urgent challenges and outlined a vision for revitalizing the sector, which is crucial to both the UK’s industrial base and its efforts to transition to a low-carbon economy. The primary themes discussed included decarbonization, workforce sustainability, strategic investments, and the alignment of domestic policies with global trade dynamics.
One of the standout voices at the summit was Roz Bulleid, Research & Policy Director at the Green Alliance, who emphasized the critical need for the UK steel industry to decarbonize. Bulleid pointed out that as global markets move towards greener production methods, the UK must transition to cleaner steel production processes, particularly by utilizing domestic scrap and reducing dependence on coal-intensive methods. She stressed that such a transformation was not only necessary for environmental goals but also vital for future-proofing the industry. “A decarbonized steel industry is essential for the future of the sector,” Bulleid noted.
She further highlighted the importance of decarbonization aligning with the protection of local communities and the preservation of skilled workforces. Citing international examples from Sweden and Germany, Bulleid underscored how countries could balance environmental and industrial goals through strategic collaboration. The Green Alliance director also called for improvements in scrap quality, reduced power costs, and the development of infrastructure for emerging technologies like hydrogen to support the transition.
In his speech, Jonathan Brash, Member of Parliament for Hartlepool, stressed the importance of revitalizing the UK steel industry. Brash’s comments were particularly poignant, given the sector’s current struggles and the challenges post-Brexit. He called for a strategic, protectionist approach to safeguard the UK steel industry against growing global competition. “Do we want the steel industry, yes or no? If we do, we must change how we act,” Brash argued, pointing to the need for more assertive policies to protect and invest in UK steel.
Brash proposed a three-pillar strategy for revitalization: protection, investment, and procurement. He emphasized the importance of aligning UK policies with international trade practices, such as the EU's Carbon Border Adjustment Mechanism (CBAM), to protect British steel from unfair competition. Brash also called for greater investment in new technologies, particularly in energy infrastructure like advanced nuclear reactors, to address the high energy costs that UK steelmakers currently face. Another key point was prioritizing the use of British steel in public procurement, which could significantly boost domestic demand and support the sector's recovery.
Liam Bates, President of Marcegaglia Stainless Long Products, also raised concerns about the future of UK steel. He shared his experiences with the company’s operations in the UK and highlighted how energy costs were eroding the competitiveness of UK steel producers. Bates pointed out that UK electricity costs were 25%–100% higher than in Marcegaglia’s operations in Italy, Sweden, and France, making it difficult for UK-based producers to compete on the global stage. Bates also urged improvements in rail infrastructure to support steel transport, emphasizing that better logistical systems were crucial to maintaining competitiveness in both domestic and international markets.
Roy Rickhuss, General Secretary of the Community Union, provided a long-term perspective on the challenges facing the sector. He lamented the decline of the UK steel industry, which has seen its market share drop from over 60% to just 32%. Rickhuss pointed out the need for forward-thinking planning, especially as the UK increasingly relies on steel imports to meet domestic demand. He also highlighted the importance of protecting key facilities such as the Scunthorpe steel plant, which remains one of the last primary steelmaking sites in the UK. Rickhuss urged policymakers to act decisively and ensure that the UK steel industry remains viable for future generations.
Tim Pick CBE, Chair of the Offshore Wind Growth Partnership, emphasized the need for a more integrated industrial strategy linking the steel and offshore wind sectors. Drawing on his experience, Pick pointed out that offshore wind development is expected to require up to 25 million metric tons of steel from 2026 to 2050. However, the UK currently fabricates just 2% of the steel used in offshore wind projects. Pick called for significant investments in infrastructure, such as larger casting facilities and enhanced plate mills, to meet this demand. He also stressed the need for stronger collaboration between sectors to leverage the economic and environmental benefits of green steel production and renewable energy development.
The discussions at the summit underscored the challenges facing the UK steel industry, but also highlighted the immense opportunities for growth and transformation. The sector is at a critical juncture, and the experts and policymakers present made it clear that decisive action is needed to secure its future. As the UK looks to decarbonize and modernize its steel production, the integration of new technologies, strategic investments, and a more proactive approach to global trade will be key to revitalizing this vital industry.
