Chinese steel decision sparks outrage

REIDsteel managing director Simon Boyd has demanded a u-turn on a decision to use thousands of tonnes of Chinese steel for an £8bn green energy project in the UK.

Net Zero Teesside (NZT) is a joint venture between BP and Norwegian firm Equinor to build the world’s first gas-fired power station with carbon capture and storage. It will be one of a handful of ‘carbon-capture clusters’ that will benefit from the £22 billion of UK state aid announced at the end of last year, according to The Times.

NZT, which it is estimated will support 4,500 jobs between 2025 and 2028, is being built on the site of the former SSI steelworks in Teesside.

BP and Equinor have agreed a fixed-price contract with Balfour Beatty to construct the power station, and French firm Technip will oversee the building of the offshore and carbon-capture elements of the venture.

Project bosses have pledged that at least 50 per cent of the engineering, procurement and construction contracts will be sourced from the UK.

However, according to The Times, Technip is on the verge of agreeing a major package of 10,000 tonnes of steel with Modern, a Chinese firm.

Simon said: “This decision is outrageous.

“BP and Equinor have stipulated that there should be 20% low carbon steel.

“British Steel does not as yet make low carbon steel. There has been no investment in this type of technology or new virgin steel blast furnaces at British Steel as yet.

“The whole point of the government takeover to bring the company into public ownership, which has yet to fully complete, was to protect our steel industry.

“British Steel belongs to the British people. It is horrifying to see British Petroleum go down a procurement route that excludes British Steel.

“Virgin steel from British Steel is the finest in the world and should be used for this project - equally this steel should be fabricated in the UK rather than in China.

“British steel is at the core of the steel making in the UK, which many manufacturing businesses rely upon.

“To export this work to China beggars belief. In addition we are not only exporting the steel making, we are also exporting the steel fabrication, a sector which employs thousands of people here in the UK.

“The irony in awarding this work for a green project to China is, of course, that China is one of the biggest polluters on the planet.

“Bearing in mind that taxpayers’ money is going towards this project, the government should be rightly embarrassed and take action to see that the decision is reversed without delay.

“It needs to look after British steelmaking and the many thousands of jobs that rely on steel manufacturing in the UK.”



REIDsteel is based in Christchurch, Dorset. It designs, makes and builds steel framed structures such as bridges, hangars, stadia and airport terminals.

The company was the first steelwork contractor to sign the UK Steel Charter and has made British Steel its preferred supplier.

It has exported to more than 140 countries to date.