The decision not to call in redevelopment plans for Chatham Docks places the UK’s steel supply in jeopardy.
- ArcelorMittal produces 30% of UK’s steel reinforcement, vital for infrastructure projects like HS2.
- The Ministry’s decision leaves the redevelopment fate to local authorities, causing concern for ArcelorMittal.
- ArcelorMittal warns of withdrawing from the UK market if the redevelopment proceeds.
- Potential job losses at ArcelorMittal underscore the urgency of resolving the Chatham site issue.
In a recent development, the Ministry for Housing, Communities and Local Government (MHCLG) opted not to intervene in the redevelopment plans for Chatham Docks, placing the future of a key steel reinforcement supplier in jeopardy. ArcelorMittal, a significant player in the industry responsible for 30% of the UK’s steel reinforcement, has voiced its concerns over the potential impact on the nation’s infrastructure projects, including HS2 and Crossrail. The refusal to call in the planning application leaves the decision with local authorities, a move that has prompted ArcelorMittal to reconsider its position in the UK market.
ArcelorMittal Kent Wire’s managing director, Matt Brooks, expressed surprise at the ministry’s decision, emphasising the critical role Chatham Docks plays within the steel and construction sectors. “We are extremely surprised by this view given the significance of the docks for the entire steel and construction sectors,” Brooks stated. Since 1988, ArcelorMittal Kent Wire (AMKW) has been a cornerstone of the UK’s largest infrastructure projects, supplying essential materials for key developments such as Thames Tideway and HS2.
The developer, Peel Waters, has proposed the creation of 31,000 square metres of adaptable workspace within the Chatham Docks area, aiming to draw in businesses from diverse sectors like technology and life sciences. Proposals include developing new green spaces and waterfront promenades. Although Peel Waters insists it is working to relocate current tenants, ArcelorMittal argues that the waterfront location remains ideal for its operations, particularly for the delivery of raw materials from Hamburg. The relocation costs in 2015, which amounted to £7 million, are a point of contention, alongside the company’s alternative proposal for 100,000 square metres of industrial space which the council dismissed.
The potential closure of the site threatens 800 jobs, a significant concern highlighted by AMKW chief executive Phil Taylor. While Peel Waters estimates their development could result in a net increase of 430 jobs, ArcelorMittal’s operations at Chatham Docks remain pivotal. Following the local authority’s grant of planning permission in May, ArcelorMittal urged the new government to reassess the project. The standstill during the election period, spurred by former local MP Kelly Tolhurst’s appeal to ex-housing secretary Michael Gove, delayed progress. However, with a formal decision looming, the urgency of this issue is ever-present.
The future of ArcelorMittal’s UK operations hinges on forthcoming decisions by local authorities regarding the Chatham site.
