Port Talbot Steelworks Debate

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Department: Wales Office

Port Talbot Steelworks

Liz Saville Roberts Excerpts
Tuesday 30th April 2024

(3 weeks ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call Liz Saville Roberts.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Diolch yn fawr iawn, Llefarydd. In the Netherlands, political pressure has resulted in Tata investing in an electric arc furnace and direct reduced iron technology, all while protecting jobs and keeping blast furnaces open. The German Government are spending €2.2 billion—over four times more than the UK is spending—on transitioning the country’s steel industry towards hydrogen. Why is the UK so uniquely incapable of effective investment in our strategic steel future?

David T C Davies Portrait David T. C. Davies
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A few people seem to have the idea that building a DRI plant would resolve this problem. The first point to remember is that if a DRI plant were built on the site, it would probably save another 200 jobs. There is a plant in Texas, run by Voestalpine, which I believe produces 2 million tonnes or so of steel every year and employs 200 people, so a DRI plant will not resolve the problem. Clearly, DRI plants require access to a regular and affordable amount of natural gas. There is, however, nothing whatsoever to stop Tata, at some point in future, building a DRI plant to go along with the electric arc furnace, if it believes that that is commercially sensible. Even if it were to do that, it would not really resolve the problem that we face: 2,800 jobs being lost in Port Talbot. At best, it would save another 200 jobs.