The Ministry of Defence (MoD) is facing criticism for sourcing steel from overseas, rather than utilising British suppliers, amidst concerns about the future of domestic steel production. The controversy arises against the backdrop of potential closures of traditional blast furnaces at Port Talbot and Scunthorpe, raising anxieties about the UK's reliance on foreign steel imports as the industry transitions to more environmentally friendly electric arc furnaces (EAFs).
The shift to EAF technology, which uses electricity to melt scrap metal rather than the energy-intensive blast furnace process reliant on carbon-emitting coke, is seen as crucial for reducing the carbon footprint of steel production. However, this transition period has highlighted vulnerabilities in the UK's steel supply chain.
Richard Tice, deputy leader of Reform UK, raised these concerns in a written parliamentary question. He pressed the government on how it is safeguarding the security of steel supplies for critical infrastructure projects and ensuring value for money during this transitional phase.
In response, the Department for Business and Trade acknowledged that neither Tata Steel nor British Steel currently supply the MoD with critical materials. The department explained that, as Tata Steel transitions its Port Talbot plant to EAF technology, it will be temporarily importing steel slab and coil while the new furnace is constructed. This admission has fuelled the criticism, with opponents questioning the MoD's commitment to supporting British industry.
The government's response further stated that: "Neither Tata Steel nor British Steel are currently critical suppliers into UK defence programmes. High quality steel, including for the Royal Navyâs new Dreadnought class submarines, is already being made by EAF steel producers." This suggests that the MoD's steel procurement is already diversified, drawing from international EAF producers which may offer competitive pricing or specialised products not readily available domestically. However, this justification has not fully quelled concerns regarding the long-term implications for the UK steel industry.
The debate highlights a complex interplay between environmental sustainability, national security, and economic considerations. While the transition to EAFs offers environmental benefits, it also presents challenges to established domestic producers. The government's commitment to supporting British Steel remains a central point of contention, with critics arguing that the temporary reliance on imports during the transition period undermines this commitment and potentially compromises the UK's self-sufficiency in a strategically important sector. The long-term impact of this policy on the UK steel industry and its ability to supply critical national infrastructure remains to be seen. Further scrutiny of the MoD's procurement practices is likely to follow.
