Using Chinese steel to build UK plant a 'betrayal'

Plans to use Chinese steel in the construction of a UK government-backed gas power station have been described as a "betrayal" that "beggars belief".

The company developing the facility on the former Redcar steel plant site, Net Zero Teesside Power, intends to buy 7,000 tonnes of Chinese steel at around £5m, the BBC understands.

Tees Valley Mayor Ben Houchen and trade association UK Steel condemned the decision and the government said ministers would be speaking to the company.

NZT Power - which is owned by BP and Equinor - said subcontracts were awarded transparently, taking into account commercial and technical considerations, and were "on track to deliver more than 50% UK content".

The company said British structural steel engineering group William Hare, alongside Modern Heavy Industries, which is based in Shanghai, was awarded the contract "following a competitive procurement process".

UK director general Gareth Stace said the decision to buy Chinese steel "rather than sourcing it from British Steel just miles away, beggars belief".

He said: "For a major, taxpayer-supported project, this is deeply disappointing and should never have been allowed to happen."

The Conservative mayor told BBC News: "It's beyond belief that despite repeated warnings to government ministers, officials and the leadership at NZT, British taxpayers are set to foot the bill to import thousands of tonnes of Chinese steel into Teesside while the UK's own steel industry remains on its knees.

"To now use Chinese steel on the very site where our own steelworks shut a decade ago is nothing short of a slap in the face.

He accused the government of having a "disgraceful disregard" for British manufacturing and British workers and said they would "rightly see this as a betrayal".

Minister for Industry and Stockton North MP Chris McDonald said "we expect Net Zero Teesside Power to use UK steel wherever possible".

He said: "This government and the country at large share an ambition to grow industry, open factories and create well-paid jobs in communities that need them."

Alasdair McDiarmid, assistant general secretary of the Community Union, which supports steelworkers, said: "It is extremely disappointing that a major UK-backed project like Net Zero Teesside has chosen to source steel from overseas rather than backing British producers and the skilled workers they employ.

"Domestic steelmakers support thousands of high-quality jobs in communities across the country and are fully capable of supplying the steel required, yet once again they have been overlooked."

A government source told BBC News: "We are deeply disappointed by this decision.

"We have been clear we expect Net Zero Teesside Power to use UK steel wherever possible and ministers will be speaking to the company."

A spokesperson for NZT Power said: "Our tier-1 contractors manage sub-contract procurement under fixed-bid contracts, balancing a range of commercial and technical considerations, including value for money.

"Subcontracts are awarded through transparent, competitive procurement processes

"NZT Power's major contractors remain on track to deliver more than 50% UK content, with around £1bn of UK-based subcontracts already awarded."

Follow BBC Tees on X,Facebook, Nextdoor and Instagram.