ArcelorMittal seeks to safeguard its operations at UK docks

ArcelorMittal on Thursday called on the next UK government to block a local authority’s approval of the redevelopment of docks in south-east England that the steel group uses to supply materials to the construction industry.

The world’s second-largest steel producer warned that Medway council in Kent giving the green light to plans for Chatham Docks by regeneration specialist and site owner Peel Waters threatened one of its main UK operations and could lead to the loss of 800 jobs. 

ArcelorMittal, which imports and processes reinforcing “rebar” steel on the site and whose lease there ends in 2025, has previously described it as a “strategic asset” for the UK economy. Its products have helped to build several high-profile infrastructure projects including London’s Elizabeth Line, the high-speed HS1 rail route and Heathrow Terminal 5. 

Phil Taylor of ArcelorMittal Kent Wire, the affected subsidiary, said the decision “brings the decimation of Chatham Docks and the loss of 800 direct jobs one step closer”.

“It all now rests with the next secretary of state to intervene and stop this threat to the UK construction sector.”

Medway’s planning committee on Thursday voted eight to seven in favour of Peel Waters’ plans to develop the docks into an employment and enterprise campus.

Despite that vote, the final decision rests with the next government. An original planning motion on the plans scheduled for earlier in May was deferred after Michael Gove, the levelling up secretary, intervened following an appeal by ArcelorMittal and issued temporary restrictions. 

The intervention by Gove, who has since decided not to stand in the upcoming general election on July 4, means that the government could scrutinise the proposals before deciding whether to call them in for review. 

The fact that the application was “rushed through even with a holding direction in place is shameful”, said ArcelorMittal’s Taylor. 

Medway council said a report would be sent to the secretary of state for levelling up “who will determine whether to call in the decision for a public inquiry”.

Peel Waters welcomed the decision by the council. It said its plans would transform the existing brownfield land into “adaptable workspace . . . and the opportunity to create hundreds of new jobs and apprenticeships”. It also plans to open up part of the waterfront to the public.

This article has been updated to say that Peel Waters is planning to develop the docks into an employment and enterprise campus rather than commercial and housing facilities.