Tory Mayor Ben Houchen Raises Concerns of Shift from British to Chinese Steel Production Through Brazil
Lord Ben Houchen, the Conservative Mayor of Teesside, has sounded the alarm on a potential plot within Keir Starmer’s government to phase out British-produced steel in favour of Chinese steel rerouted through Brazil. This revelation follows the recent closure of blast furnaces at the Port Talbot steelworks in south Wales, resulting in the loss of thousands of jobs.
Of particular concern to Lord Houchen is the fate of the steelworks in Scunthorpe in the North East. He suggests that there may be a covert agreement in place to close down the Scunthorpe steelworks and substitute British steel with imports from Brazil, which are purportedly sourced from South America but are actually of Chinese origin.
The Scunthorpe steelworks, under the ownership of Chinese company Jingye, is currently undergoing a £1.25 billion decarbonisation plan that could lead to significant job losses, with unions estimating up to 2,000 redundancies out of a workforce of 4,000 in the Lincolnshire town. Lord Houchen criticises Labour for allegedly reneging on its commitments to steelworkers and expresses fear over the future of steel production in England.
In response to these developments, Lord Houchen has secured £4 billion in funding for a new Net Zero green energy initiative at the former steelworks site in Redcar. While previously accused of “corruption and cronyism” by Labour in relation to the project, he has since been cleared, with Labour now supporting the endeavour. Despite this, Lord Houchen remains staunch in his critique of Labour’s handling of the steel industry.
Lord Houchen warns of dire consequences if the Scunthorpe steelworks were to close, impacting not only jobs and the economy but also raising security concerns due to the critical role of steel in national defence applications such as missiles, weapons, submarines, warships, and aircraft. Expressing apprehensions about sourcing Chinese steel through Brazil, he questions the motivations behind such a decision and suggests internal government conflicts over the matter.
The Department for Business and Trade declined to comment on the situation, although Business and Trade Secretary Jonathan Reynolds recently announced a new steel strategy for Britain aimed at enhancing the country’s steel capabilities across the supply chain, including primary steelmaking. As discussions unfold, the fate of British steel production hangs in the balance amidst a complex web of economic, political, and security considerations.