By Works start on huge £80m investment at British Steel
British Steel have confirmed a huge £80m investment programme is underway.
British Steel’s work on a staggering £80 million investment programme has started as the steel giant looks to enhance their product range whilst improving operational and environmental performance.
According to British Steel, over half of the investment (£48 million) will finance the installation of a new billet caster at their Scunthorpe site.
Additionally, the company’s Scunthorpe Rod Mill has been allocated £32 million for general upgrades.
The new announcement follows a previous report made by British Steel pertaining to “feasibility studies” into the uses of green hydrogen as a potential fuel source.
Xifeng Han, British Steel’s CEO, said:
“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.
“While we’re still in the early stages of our transformation, these projects are a major step forward for British Steel and our customers. The new technology and manufacturing capabilities will significantly enhance our product range and deliver improved operational performance and efficiencies.
“Steel is vital to modern economies and investments like these will ensure we keep delivering the steel our customers and the world need while playing a central role in transitioning to a low-carbon, circular economy.”
The new billet caster, which will allow the steel giant to manufacture lengths of semi-finished steel, is set to be commissioned at the end of the year. It is hoped that this investment will “enable the company to both increase capacity and grow into new markets”
Richard Longbottom, Technical Manager, Steelmaking Development, said:
“The new caster will produce billets of an even higher standard, with much better internal and surface qualities. We’ll also have a broader product range, enabling us to become more competitive and expand our offering to customers.”
It is understood that work is now underway to install state-of-the-art mill equipment which will “significantly” increase engineering capabilities at British Steel’s Scunthorpe Road Mill.
In a statement, British Steel has suggested the upgrades to the mill are expected to be commissioned in 2023.
Phil Knowles, British Steel’s Commercial Director for Wire Rod, said:
“Our bespoke new facility will be a real game changer. We’ll be able to manufacture wire rod with tighter tolerance control, improved ovality and world-class surface quality, key factors in meeting current and future customer requirements. Our existing customers will also be able to take advantage of our enhanced package solutions as we open up a comprehensive product range. Our service excellence together with improved efficiencies for our customers mean this investment will deliver world-leading capabilities. We’ll be able to explore new market opportunities too, securing a strong future for our wire rod business. I’m very much looking forward to seeing our strategic plans become a reality.”
Additional investments will also be commissioned at FN Steel, British Steel’s sister company, located in the Netherlands.
