Scunthorpe: £80m British Steel investment is 'game changer' says firm

The investment will be spent at British Steel sites in Scunthorpe

An £80m investment programme for Scunthorpe's British Steel plant has been described as a "game-changer" by the manufacturer.

The site will get £48m for a new billet caster as well as the existing rod mill receiving an upgrade worth an estimated £32m, the business has confirmed.

British Steel, bought by China's Jingye Group in 2020, said a new water recycling plant would cut energy use.

The GMB union said it was a positive move for the job security of members.

"This is an incredibly exciting time for our business with unprecedented levels of investment - fuelled by the drive of our employees - powering us towards a sustainable future," Xifeng Han, British Steel's CEO, said.

The investment would allow the steel-making business to expand its product line, the firm added.

'Positive sign'

The new billet caster, which will make semi-finished steel "of an even higher standard", will allow the company to increase its capacity, technical manager Richard Longbottom said.

Phil Knowles, British Steel's commercial director for wire rod, said: "Our bespoke new facility will be a real game-changer."

Craig Thomson, regional organiser with the GMB, said the new investment would "clearly be a boost to the local economy" and would allow British Steel to be more competitive globally.

He called on the company to support staff and encouraged a pay rise for members, which he said had not had a significant increase in 15 years.

"It shows a positive sign that the company is willing to invest and look to the future.

"British Steel have been in and out of different ownership and it's a move towards a long-term investment approach, which is reassuring," he added.

Unite national officer Harish Patel said: "This is welcome news and we are pleased the commitments given to the workforce are now materialising."