Union leaders are calling for a “just transition” for steelworkers after Business Secretary Peter Kyle endorsed a plan to shift the Scunthorpe steelworks to electric arc furnaces (EAFs). The move, while environmentally friendly, threatens to displace thousands of workers employed at the plant’s traditional blast furnaces.
Alasdair McDiarmid of the Community union acknowledged the need for change but stressed that workers must not be left behind. His caution is rooted in recent history: a similar transition at Tata Steel in Port Talbot led to 2,500 job losses, a precedent that looms large over the Scunthorpe plant.
Peter Kyle, who is developing a new steel strategy, said the government is “keen to see that transition happen” to secure the plant’s future and meet climate goals. The plant has been under state control since April, when its Chinese owner, Jingye Steel, threatened closure, putting 2,700 jobs at immediate risk.
Beyond the job fears, unions are also fighting to protect the UK’s industrial capacity. McDiarmid added that it is vital to “maintain primary steelmaking capacity here in the UK.” This is a direct challenge to the EAF plan, as the new furnaces melt scrap steel, unlike blast furnaces that create virgin steel from iron ore.
The government is exploring a costly potential fix: a separate plant to create Direct Reduced Iron (DRI) using green hydrogen, which could feed the EAFs. However, the financial viability of this is in question, especially as “hundreds of millions” from the government’s £2.5bn steel fund have already been spent on operational bailouts.