Chinese steel will be used for a taxpayer-funded £4billion green power plant on the site of the former Redcar steelworks – sparking accusations of a ‘betrayal’ of British workers.
A deal for 7,000 tons of construction steel has been agreed between Net Zero Teesside (NZT) and China’s Modern Modular Engineering and Construction Company (MMEC) – despite the same type of steel being available from suppliers including state-run British Steel.
NZT receives government funding through Ed Miliband’s Department for Energy Security and Net Zero and is backed by BP, Norwegian firm Equinor and French energy giant Total.
It was first revealed to be considering Chinese steel in November, resulting in a huge backlash – particularly given the power station site’s location on part of the former Redcar steelworks in North Yorkshire, which shut in 2015.
It is understood that MMEC’s steel was preferred because it comes from an electric arc furnace and so meets green aspirations, whereas British Steel’s would be from the Scunthorpe blast furnaces.
A source said: ‘This is damaging for UK jobs and is a missed opportunity when so much taxpayers’ money is involved.’
Talking the talk: NZT receives government funding through Ed Miliband’s Department for Energy Security and Net Zero and is backed by BP, Equinor and Total
Gareth Stace, director general of UK Steel, also said use of Chinese steel ‘beggars belief’. ‘For a major, taxpayer-supported project, this is deeply disappointing and should never have been allowed to happen.
‘UK producers, including British Steel in the region, have both the capability and capacity to supply this steel.’
Tees Valley’s Tory Mayor Ben Houchen called the contract decision a ‘betrayal’ of British workers and manufacturing.
He said: ‘Teesside is living proof of the devastation caused to surrounding communities by the closure of industries like steel-making.
‘To now use Chinese steel on the very site where our own steelworks shut a decade ago is nothing short of a slap in the face, yet the Government has stood by and let this happen.
‘This decision tells you everything you need to know about Labour’s complete lack of a serious industrial strategy and its disgraceful disregard for British manufacturing and British workers, including those in Teesside, who will rightly see this as a betrayal.’
Business minister Chris McDonald, responding to a question from Conservative MP Julian Lewis, chairman of the intelligence and security committee, said: ‘NZT is using an open and transparent tendering process and will be awarding contracts based on capacity, capability and other factors.’
McDonald added: ‘We will continue to champion British steel-making and our steel communities now and for generations to come.’
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