MP hopeful two new furnaces will be built in town

The MP for Scunthorpe has said he is "quietly hopeful" that two new electric arc furnaces will be built at the town's steelworks.

Sir Nic Dakin was responding to a report in The Sunday Times suggesting British Steel will scrap plans to build one of the furnaces on Teesside in favour of placing both in North Lincolnshire.

When asked if he thought the report was accurate, Sir Nic said it "rings true".

British Steel, which is owned by the Chinese firm Jingye, said it was in "ongoing discussions" with the government and "no final decisions have been made".

The two new "green steel" furnaces would replace British Steel's blast furnaces in Scunthorpe as part of plans to rebuild the country's steel industry.

Sir Nic told BBC Look North: "It rings true to me, it's up to the company to confirm or deny that."

He added: "It's really positive to Scunthorpe steelmakers and their families.

"I'm quietly hopeful, but there's still some hard work to do."

British Steel was granted planning permission to build furnaces at Scunthorpe and at Lackenby, Teesside, last April.

Reacting to the news that the Teesside plan appeared to have been scrapped, Lord Houchen, the Mayor of Tees Valley, told the BBC: "It looks like Teesside is now playing second fiddle, with the priority being building the furnaces in Scunthorpe."

He warned that a decision to focus on one site, rather than two, would lead to "a break in the production of primary steel" during the transition to the new furnaces, which would expose the industry to "imports from India and China".

A British Steel spokesperson said: "We are in ongoing discussions with the government about our decarbonisation plans and the future operations of our UK business.

"While progress continues, no final decisions have been made."

A spokesperson for the Department of Business and Trade said: "This government will simply not allow the end of steel-making in the UK.

"That's why we've committed up to £2.5bn of investment to rebuild the UK steel industry and support communities now and for generations to come.

"We're working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that's right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain."

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