Wednesday, June 29, 2022

£80m investment programme gets underway at British Steel

British Steel has started work on £80 million of investments to enhance its product range and improve operational and environmental performance.

The bulk of the investment – £48 million – is financing the installation of a new billet caster at the company’s Scunthorpe site. At the same time, its Scunthorpe Rod Mill is being given a £32 million upgrade while further investments are being made at FN Steel, British Steel’s sister company in the Netherlands.

The announcement comes a short time after British Steel announced it was conducting a feasibility study into the use of green hydrogen as a fuel source.

Xifeng Han, British Steel’s CEO, said: “This is an incredibly exciting time for our business with unprecedented levels of investment – fuelled by the drive of our employees – powering us towards a sustainable future.

“While we’re still in the early stages of our transformation, these projects are a major step forward for British Steel and our customers. The new technology and manufacturing capabilities will significantly enhance our product range and deliver improved operational performance and efficiencies.

“Steel is vital to modern economies and investments like these will ensure we keep delivering the steel our customers and the world need while playing a central role in transitioning to a low-carbon, circular economy.”

The new billet caster, which will manufacture lengths of semi-finished steel known as billets, is being installed by Danieli and is expected to be commissioned at the end of the year. It will enable the company to both increase capacity and grow into new markets.

Richard Longbottom, technical manager, Steelmaking Development, said: “The new caster will produce billets of an even higher standard, with much better internal and surface qualities. We’ll also have a broader product range, enabling us to become more competitive and expand our offering to customers.”

Work is also underway to install state-of-the-art mill equipment to significantly extend engineering capabilities at British Steel’s Scunthorpe Rod Mill. Part of a £50 million investment announced in 2018, the scheme had been paused but is now being resumed under British Steel’s new ownership. Once the high-tech upgrade is complete, the company’s wire rod offering will have much-improved tolerances and surface quality with an extended product range with diameters up to 28mm. The product range will also offer customers considerably improved mechanical properties and enhanced options for supply condition such as normalised rolled and low-temperature rolled wire rod.

The reconfigured mill layout and new equipment are expected to be commissioned in 2023.

Phil Knowles, British Steel’s commercial director for Wire Rod, said: “Our bespoke new facility will be a real game changer. We’ll be able to manufacture wire rod with tighter tolerance control, improved ovality and world-class surface quality, key factors in meeting current and future customer requirements.

“Our existing customers will also be able to take advantage of our enhanced package solutions as we open up a comprehensive product range. Our service excellence together with improved efficiencies for our customers mean this investment will deliver world-leading capabilities. We’ll be able to explore new market opportunities too, securing a strong future for our wire rod business. I’m very much looking forward to seeing our strategic plans become a reality.”

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