British Steel opens new steel profile service centre
British Steel has announced the opening of a £26 million ($31.6m) service centre at its special profiles business in Skinningrove, UK, Kallanish learns.
The site specialises in manufacturing steel profiles for the earth moving, forklift, construction, shipbuilding and mining markets. The investment will establish it as one of the leading suppliers to the forklift truck mast industry.
Its milling capability will primarily service the demanding high-reach forklift truck market. The company adds that the investment will enable the company to explore growth opportunities across the globe for its standard and bespoke forklift mast profiles, with the new warehousing and processing facility forecast to significantly increase throughput within the next two years.
“This is the largest single investment in our special profiles business for more than 30 years, demonstrating our owner’s commitment to strengthening British Steel’s position at the heart of UK manufacturing,” states Richard Napier, British Steel’s sales director for special profiles.
“The new facility also firmly establishes us as one of the world’s leading manufacturers and processors of value-added profiles for the forklift industry. Our extended range of products are designed and manufactured to exact customer requirements, with the new milling capability offering profiles with tolerances of just 0.1mm – precision few global competitors can match,” he adds.
The facility includes four new CNC lathes for turning mill rolls, three automated bandsaws for cutting stock to exact lengths, a laser measurement system for process control of every bar rolled, and a warehousing system for storing and processing material from the rolling mill. It also incorporates a 14-metre bed, milling machines.
Steel for the rolling mill at Skinningrove, including the new service centre, is manufactured in Scunthorpe.
Late last year the company also opened a £10m rail stocking facility in Scunthorpe.
Carrie Bone UK
British Steel mulls building two electric arc furnaces at Scunthorpe site
British Steel is continuing its discussions with the UK government regarding the company’s decarbonization plans and the future operations of its UK business, a company spokesperson told S&P Global Commodity on Jan. 13.
While the company did not provide additional details, local media sources familiar with government discussions indicated that the initial plans, which envisioned building one electric arc furnace at Scunthorpe and another at Teesside, have been scrapped in favor of constructing the two furnaces at the Scunthorpe, north Lincolnshire site.
British Steel was nationalized in 2019 while the government sought buyers. It was subsequently sold to the Chinese steelmaker, The Jingye Group, which pledged a GBP1.25 billion ($1.55 billion) decarbonization plan. Under the proposed plan, the company was aiming to install two electric arc furnaces—one at its headquarters in Scunthorpe and the other at its manufacturing site in Teesside.
“While progress continues, no final decisions have been made,” the company spokesperson said.
“We’re working across government in partnership with trade unions and businesses, including British Steel, to secure a green steel transition that’s right for the workforce, represents a good investment for taxpayers, and safeguards the future of the steel industry in Britain,” a spokesperson from the Department for Business and Trade said to S&P Global when reached for a comment on Jan. 13, underscoring the government’s commitment to preventing the end of steelmaking in the UK, with up to GBP2.5 billion of investment for the UK steel industry.
Currently, British Steel operates two furnaces: the Queen Anne Blast Furnace and the Queen Bess Furnace. The Queen Anne Blast Furnace was temporarily offline due to operational issues but resumed operations in late December.
British Steel’s plant in Scunthorpe is the only steelmaker in the UK that still produces crude steel after Tata Steel closed all its blast furnaces at Port Talbot in South Wales, securing Eur500 million in funds for its low-carbon transition to build its Electric Arc Furnace.
The company has been working with the government for months to secure funding for the relaunch of the site and to begin the transition from blast furnace production to electric arc furnace production, with the first EAF expected to become operational by late 2025. This would replace the 3 million mt/year blast furnaces responsible for the vast majority of the company’s CO2 emissions.
Platts, part of S&P Global Commodity Insights, assessed Hot Rolled Coil weekly (HRC) DDP West Midlands at GBP520/mt on Jan 9.
Customers drive emissions reduction, technology shift: British Steel
Customers are driving the emissions reduction efforts and technology shift by steelmakers, according to Chris Vaughan, technical director at British Steel.
“It’s important to reflect the reasons why we are shifting is a primary drive to drive down CO2 emissions, and the way that we are governed on that. It’s policy that’s driving it, it’s public perception, but the pace of change that’s really driving the removal of emissions and taking those to another level is the customer base,” he said at last week’s UK Metals Expo attended by Kallanish.
“Customers are driving the manufacturers to decarbonise as quickly, if not more quickly than the policy timescales with 2035 and net zero by 2050,” he added.
British Steel has a £1.25-billion ($1.65 billion) decarbonisation plan to shift away from blast furnaces to electric arc furnace, with planning permission for this secured in Scunthorpe and Teeside earlier this year.
Vaughan noted some of the challenges the firm is facing came from the customer base potentially switching to materials other than steel which lower emissions.
“They would consider other materials for construction, etc, if we are unable to decarbonise quickly enough to meet the aspirations of their timelines,” he said.
“The transition for us is about reduction in emissions. From a British Steel perspective and an integrated manufacturer currently, the vast majority of our emissions sit within scope 1, so when we talk to clients and customers and they’re looking at us to decarbonise their own downstream, it sits in their scope 3, but their scope 3 is our scope 1,” he added.
The move to EAF-based steelmaking makes sense for the UK, but other global locations may better suit other technologies. “There’s a set of circumstances that fit electrification for the UK and the drive towards EAF, but EAF is not the only technology and it will not be the only technology on a global scale for decarbonisation,” Vaughan observed.
“Globally, it’s got to be considered from geography, where you are in your economic cycle, what is the raw material access … where’s the infrastructure as well to allow that decarbonisation,” he continued.
Amid the UK-wide move away from blast furnaces, much of the conversation has focused on whether EAF technology will be sufficient for grades that have traditionally been produced via primary steelmaking.
“It’s been around a long time. We have domestic producers using EAF technology and have done for decades. It’s proven technology which we can capitalise on to help that shift,” he added. “All grades can be made from that [EAF] route; it’s what you feed the furnace, and the raw material input that drives that, in around working with the supply chain to achieve it as well.”
He also noted that EAF steelmaking would allow more flexibility. “Our current method within British steel on integrated production requires stability, it’s not easy to take capacity up and down … whereas the EAF allows you to respond more dynamically and flexibility to market requirements which gives the benefit to be able to tune your operation to what you’re facing from the market perspective,” Vaughan concluded.
Carrie Bone UK
British Steel bags Turkey rail contract
British Steel has won a multi-million-pound contract to supply rail to Turkey. It will deliver tens of thousands of tonnes of track for a new high-speed electric railway connecting Mersin with the cities of Adana, Osmaniye and Gaziantep.
It will help create a lower-emission transport link between Turkey’s second-largest container port and inland cities more than 150 miles away, with the project expected to reduce CO2 emissions by more than 150,000 tonnes/year, the steelmaker says.
UK Export Finance (UKEF), the UK government’s export credit agency, has underwritten €781 million ($847m) of financing to support construction of the 286km railway.
“This is the start of what we expect to be a new unique partnership between British Steel, UKEF and international contractors,” British Steel commercial director – rail Craig Harvey says in a note sent to Kallanish. “The ability to combine world-leading quality rail with a world-leading finance solution for supply into global markets and networks is an unparalleled supply chain solution. Looking forward, we are very excited about what this will achieve.”
The first shipments of rail will be transported from British Steel to Turkey in the second quarter. It is manufactured in Scunthorpe and is 60E1 in grade R260, each at 36 metres in length.
Adam Smith Poland
British Steel production glitch sparks delivery delays
UK longs producer British Steel is delaying deliveries because of a problem with one of its blast furnaces, according to market sources.
The company has moved to one blast furnace, from two, because it is struggling to make pig iron of sufficient quality, the sources said. There are some suggestions that this could be caused by problems with a batch of imported coke. The company recently took its coking ovens off line with a view to reducing its carbon footprint — and the amount of emissions allowances it needs to buy — and has been importing coke since.
“We are taking decisive action to minimise the potential impact on customers’ orders caused by a production issue,” a company spokesperson told Argus. The spokesperson refused to comment further on the nature of the problem or how many blast furnaces are operating.
The company’s sales director has been ringing customers to inform them that deliveries could slip by 3-4 weeks as a result of the issue, multiple large domestic customers of the mill told Argus.
There are also suggestions that the company has insufficient gas for both its sections and wire rod mills, according to workers at the site and sources close to the company. The spokesperson refused to comment.
Senior officials from British Steel recently met with the head of Liberty Steel, Sanjeev Gupta, in Scunthorpe. It is unclear what was discussed, but sources said one topic could have been gas availability for Liberty Merchant Bar, the site previously operated on coke oven offgases from British Steel.
Others said the discussions could have been centred on state aid in light of the government’s £500mn grant to Tata Steel to help it decarbonise its operations. British Steel also has been in talks with the government and is looking to establish electric arc furnaces to reduce the carbon intensity of its production.
Source: argusmedia.com
