We look into the UK’s unsettled steel history as a backdrop to this sudden funding surge driven by pressing national priorities from decarbonisation to defence. Which highly skilled roles will be required and how can contractors act now to secure contracts?
Since the Thatcher era, there have been dramatic shifts within the UK steel industry. From its large-scale nationalisation to a smaller, more focused, and increasingly green sector, backed by significant government investment.
Today, we’re seeing a combination of public and private steel sector investment that is already creating thousands of jobs. Construction has begun on the Port Talbot green steel project, safeguarding 5,000 positions. A new manufacturing investment in Sheffield will add hundreds more roles.
Investments such as these create many opportunities for skilled contractors and freelancers. As projects like Port Talbot’s green steel initiative advance, demand will rise for expertise in:
- Engineering: Mechanical, electrical, civil, structural, and process engineers for design, construction, and operations
- Project Management: Managers to oversee complex industrial builds and technology transitions.
- Construction Trades: Professionals in fabrication, welding, pipefitting, electrical installation, and heavy machinery operation
- Environmental and Sustainability Consultancy: Expertise in decarbonisation, carbon capture, and environmental compliance
- Digital and Automation Specialists: Professionals in industrial automation, data analytics, and digital twin technologies
- Health and Safety: Essential expertise for heavy industry
But what is driving steel investment and jobs?
Steel production is carbon-intensive, contributing about 2.2% of UK greenhouse gas emissions. To meet net-zero targets by 2050 the industry will have to turn its back on its dirty past and transform into a new era of “green steel.”
Investments, including the Port Talbot, which use electric arc furnaces (EAFs) are using scrap steel and exploring hydrogen-based direct reduction (DRI). This positions the UK to supply businesses building wind turbines, electric vehicles, and green infrastructure.
National Grid has also unveiled plans for a “vital” infrastructure upgrade that will support the transition to Tata Steel’s new electric arc furnace (EAF) at Port Talbot and strengthen the local electricity network.
The proposed Margam Connection Project will see the expansion of the existing Margam site with a new 275kV gas-insulated substation (GIS), details of which will be shared at the event.
Steel sovereignty
Over the years, the UK steel industry has faced global overcapacity and arguably unfair trading. This investment bolsters domestic production, reducing reliance on imports and vulnerability to market volatility.
A secure supply of essential materials, especially “virgin steel” for defence and large infrastructure, will mean supplies are readily available. According to RUSI and Chatham House, maintaining sovereign capability in strategic industries like steel is vital for national security and economic independence.
Beyond protecting existing jobs, these investments can inject new life into industrial communities. The steel sector directly supports around 40,000 UK jobs, with 61,000 more in its supply chain. The industry also boosts demand from sectors such as offshore wind, which needs 25 million tonnes of steel by 2050 – a potential £21 billion market for UK producers.
New steelmaking plants
Many UK steelmaking plants are ageing, needing significant capital. Funding modernises facilities, enabling the industry to adopt cutting-edge technologies and compete globally, despite higher domestic energy costs. A new Steel Council, uniting industry, unions, and government, claims it will take a collaborative approach for a competitive, sustainable future.
For contractors and freelancers wanting to act on this opportunity, here are some tips:
- Company watch: Check career sections of major steel producers (e.g., Tata Steel, British Steel, Liberty Steel) and involved construction/engineering firms
- Agency partnerships: Work with specialist recruitment firms focusing on industrial, manufacturing, engineering, and energy sectors
- Network: Attend industry events, trade shows, and conferences to connect with key players.
- Showcase your expertise: Highlight experience in large-scale industrial projects, green technologies, automation, and project delivery anywhere you can (i.e. LinkedIn, chat rooms)
- Upskill: Consider courses or certifications in new green steel technologies, industrial automation, or specific engineering software
UK steel industry: A historical timeline (Thatcher Era – 2025)
The UK steel industry has undergone profound transformations since the late 1970s, marked by significant industrial disputes, large-scale job losses, privatisation, and more recently, a strategic pivot towards green production. This timeline outlines key events and trends shaping the sector from the Margaret Thatcher era to 2025.
1980s: Decline, Strikes, and Privatisation
1979: Margaret Thatcher becomes Prime Minister. The British Steel Corporation (BSC), nationalised since 1967, is facing significant losses. Employment in the steel industry stands at around 271,000.
January 1980: Approximately 100,000 steelworkers launch a three-month national strike over pay, the largest industrial action in post-war history at the time. While ostensibly about wages, it becomes a test of the new government’s resolve against nationalised industries and unions. The strike ends with a minimal pay increase.
Early 1980s: Following the strike, major job losses are announced. Port Talbot and Llanwern collectively lose 11,000 jobs. Further redundancies hit Sheffield and Scotland, with at least 1,600 jobs cut.
1981: Steel industry employment falls sharply to 167,000.
By 1983: BSC has cut 166,000 staff since 1980. The corporation is losing £1.8 billion annually. National unemployment rises significantly.
1984-1985: While not a steel strike, the year-long miners’ strike (March 1984 – March 1985) further weakens trade union power across heavy industries, including steel, and signals the government’s stance on industrial disputes.
1988: British Steel is privatised by the Thatcher government. Employment falls below 100,000.
1990s – Early 2000s: Continued Decline and Global Pressures
1990s: Employment in the steel industry continues a gradual decline throughout the decade.
Early 2000s: The industry faces ongoing challenges from global competition and overcapacity. Employment reaches 37,000 by 2008.
2008 – 2010s: Economic Downturn and Major Closures
2008-2009: The global economic downturn impacts the steel industry, leading to a slight dip in employment.
January 2010: Threats of closure and redundancy continue to cause uncertainty and stress for steelworkers.
2014: Steel industry employment recovers slightly to 34,500. The industry’s gross value added (GVA) is £2.2 billion, representing 0.1% of total UK economic output.
2015: The SSI Teesside Steelworks at Redcar closes, resulting in thousands of job losses and a significant economic shock to the region. Over 4,000 job closures are announced across the British steel industry from September 2015 onwards.
2019: British Steel, then owned by Greybull Capital, goes into liquidation. It is subsequently acquired by Chinese firm Jingye Group in 2020.
2020s – 2025: Decarbonisation Drive and Renewed Investment
Early 2020s: Global steel overcapacity continues to exert downward pressure on prices. The UK’s import share of steel rises, reaching 60% in 2023 and 68% in early 2024. High domestic energy costs further challenge UK producers.
2023: The UK produces 5.6 million tonnes of crude steel, 0.3% of the world’s total. The industry directly supports 37,000 jobs.
2024: Tata Steel announces plans to close its blast furnaces at Port Talbot, transitioning to less carbon-intensive electric arc furnaces (EAFs). This move is expected to result in over 2,800 job losses at Tata Steel UK sites over three years.
September 2024: The government announces plans for a new steel strategy, aiming to “ramp up investment, strengthen supply chains and create more well-paid jobs”.
2025: Construction begins on the Port Talbot green steel project, securing 5,000 jobs. A new manufacturing investment in Sheffield creates hundreds of jobs.
The government commits up to £2.5 billion in funding for the steel sector, in addition to £500 million for Port Talbot’s transformation.
A new Steel Council is launched to guide the sector’s future. Concerns remain about the loss of “virgin steel” production capability and the impact of the transition to EAFs on employment. Steel safeguards, which have protected the UK sector from trade diversion, are set to expire in 2026, prompting calls for new trade policies.
