UK construction pledges 'doomed to fail', warns ArcelorMittal



Pledges made by major political parties to boost UK construction are potentially doomed to fail, according to steel giant ArcelorMittal.


In the past weeks the Conservatives, Labour and Liberal Democrats have all released their manifestos, each with significant pledges to build more houses and boost infrastructure spending.

The steel giant’s UK subsidiary, ArcelorMittal Kent Wire Ltd, has issued a press statement in response - applauding this ambition but criticising a lack of support for the sector.

This statement reads: “Huge infrastructure commitments demonstrate the scale of ambition by the leading political parties, but are doomed to failure unless matched the ability to actually build.”

The steel supplier’s complaints stem from the recent move by Medway Council to redevelop Chatham Docks in Kent.

The docks are home to a major site for ArcelorMittal Kent Wire, which the company claims provides 30% of reinforced steel to the UK construction industry — the site could be subject to closure if the redevelopment plans go ahead.

Matt Brooks, managing director at ArcelorMittal Kent Wire, said: “As one of the largest suppliers of this product we understand the market well and what the implications would be were there to be a shock to that market.

“A shock such as a major supplier having to withdraw from the UK due to their centre of operations being closed, as is the case at Chatham Docks where 800 plus jobs are at risk thanks to Peel.”

The steel company has been a vocal critic of the plans for Chatham Docks and is renewing calls for a review of these plans, even claiming the next secretary of state should intervene “if needed”.

Matt added: “This would have a devastating impact locally and on the UK’s ability to deliver large scale infrastructure.

“We urge all parties, especially Labour, to think hard about the need to ensure security of supply for infrastructure critical products and save Chatham Docks.”

In particular, ArcelorMittal Kent Wire has accused Peel Waters’ plans for the site of being a “trojan horse for more residential” development, with permission currently granted for a mixed used scheme on the site.

DFT contacted Peel Waters for comment, whereby managing director James Whittaker, responded: “Basin3 is an employment scheme on employment land, there is no residential uses within this proposal and the significant benefits our Basin3 development will deliver, which includes trebling the number of jobs on site, remain unchanged.
 
“Our redevelopment plans are to improve part of an industrial estate which [is situated] on the former Chatham Docks site.

“The site is currently used for heavy industries, which produce significant carbon emissions from the manufacturing process on the site and attracts significant HGV traffic along with noise and dust — our plans for the site will diversify employment opportunities, attract in a wider spectrum of businesses and increase investment in the area.
 
“We have invested over £125m into our neighbouring Chatham Waters development, we have invested over £15m into the lock gates at Chatham Docks over the past 12 years and Peel Ports have significantly invested into ports and operational infrastructure across the country.
 
“We have tried to engage with ArcelorMittal and have offered to work with them on potential relocation opportunities, like we have done successfully with other tenants, but they have chosen not to review these possibilities therefore putting their employees jobs at risk.”



Leave a comment