UK Steel's recently published strategy recognizes that switching to electric arc furnaces will lead to a reduction in the workforce compared to working in blast furnaces, Kallanish notes.
It notes that the remaining life of blast furnaces in the UK is coming to an end, and "it will be increasingly unprofitable for steel producers to maintain these aging assets."
As this infrastructure is replaced, steel production will switch to decarbonized forms of production such as electric steelmaking furnaces, which is in line with both "clear economic realities" and the UK's zero electricity consumption goals.
"Steel production is developing, and the size and structure of the workforce will have to adapt," it says.
The labor required to ensure the production of EDP is indeed different from the labor in traditional blast furnaces and probably less. Therefore, transition plans should take into account the consequences of potential job losses, while maximizing opportunities to create new jobs in a promising sector, he adds.
Carbon intensive methods such as continuous heating blast furnaces face increasing carbon costs at home and abroad. The Strategy states that upgrading the capture, disposal and storage (CCU) system in an aging blast furnace will be technically challenging, will have operational efficiency limitations, and will entail significant capital and operational costs, although this has not yet been proven in practice.
However, it adds that blast furnace production will continue in the near future, and to ensure reliable supply, it is vital to make a managed transition to maintain steel production and protect economic sustainability.
The time frame for this change has not been published as part of the steel production strategy. In the spring of 2024, British Steel received permission to build electric steelmaking plants in Scunthorpe and Teesside. However, that was before the government intervened in early 2025.
The Government continues to attract private sector investments, both in existing steel mills and in the creation of new steelmaking facilities. It says that the company continues to work with the owners of British Steel to find a pragmatic, realistic solution for the future of the steel company. The company has repeatedly stated its preference to find a partner from the private sector to implement the transition period.
As part of the transition to EDP, scrap metal is becoming an increasingly valuable commodity, which will reduce
