More than 30 bosses of UK constructional steelwork fabrication companies have written to business secretary Jonathan Reynolds seeking a 'new deal for steel'.
The want public infrastructure procurement to prioritise British companies over foreign suppliers, even if the foreign supplier are less expensive.
Among the 36 signatories are executives from Severfield, William Hare, Billington Holdings and Caunton Engineering.
The letter, which has been coordinated by the British Constructional Steelwork Association (BCSA), sets out how the fabrication companies want to the same support that is being handed to British steel producers.
Jonathan Clemens, chief executive of the BCSA, said: 鈥淭he government鈥檚 recent efforts to save British steelmaking are welcoming and are important steps in the right direction. But steelmaking does not stand alone; it depends on a robust supply chain of domestic fabricators, engineers, and constructors. If we are serious about building a strong, resilient, and low-carbon infrastructure future, then investment must extend across the entire steel ecosystem. That starts with ensuring British companies are not priced out or passed over in public procurement. The capacity, skills, and ambition are here. What鈥檚 needed now is the political will to act on them. The Procurement Act sets out a framework for public buyers to actively engage UK SMEs on public contracts, so hopefully the government will take a positive stance on enforcing this.鈥�
Yesterday the government announced a major deal between Network Rail and British Steel, a 拢500m five-year contract for British Steel to supply 337,000 tonnes of rail track, just two months after the government intervened to save the Scunthorpe plant from closure.
The remaining 86,500 tonnes of rail that Network Rail is set to need over the next five years will come from 聽Austrian and German suppliers Saarstahl and Voestalpine.聽Saarstahl Rail will supply a minimum of 78,000 tonnes of long and short rail. Voestalpine supply a minimum of 8,500 tonnes of switch rail.聽The new five-year contracts start in July 2025.
The letter from the UK steelwork contractors says:
鈥淲e welcome the government鈥檚 commitment to "back British steel." To deliver on that ambition, Britain must also back the companies that use, fabricate, and construct with British steel, ensuring that public investment fully supports British skills, jobs, and innovation.
鈥淲e therefore call on the government to implement a New Deal for Steel, starting with:
- Introducing an immediate review in to the awarding of public infrastructure contracts.
- Publishing a clear policy statement linking support for British steel production with active support for UK-based fabrication, construction, and delivery.
- Prioritising UK constructional steelwork companies in public procurement frameworks, recognising their critical role in delivering economic growth, industrial resilience, and net zero infrastructure.
- Reviewing and reforming procurement practices to ensure that capable UK firms are not undercut purely on upfront price, and that broader economic, social, and environmental benefits are fully valued in decision-making.
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