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ArcelorMittal has warned the UK government that one of its key units could be forced to leave the country if its application to redevelop a commercial port in southeast England is approved this week.
The world's second-largest steel company said the decision to allow the closure and subsequent redevelopment of part of Chatham Docks in Kent would have a “seismic negative impact” on the UK economy and several strategic industries.
The warning was contained in a letter sent by ArcelorMittal to Level Up Secretary Michael Gove on Saturday and was first reported by Sky News.
Matthew Brooks, managing director of construction steel supplier ArcelorMittal Kent Wire, said in a letter that he would like to intervene to ensure that the proposals, which are due to be considered by Medway Council this Wednesday, can be scrutinized more fully. Mr Gove was asked to do so. The site will be redeveloped for residential and commercial use under an application by Peel Group's Peel Waters.
“Our concern is that Peel's application to redevelop Chatham Docks is not only wrong for the UK, but has also been advanced with little scrutiny and a lack of public awareness. relevant stakeholders are unaware of the consequences if it goes ahead,” Brooks wrote in the letter, a copy of which was seen by the Financial Times.
“This is very time sensitive. It will not be possible to call the application after next Wednesday,” Brooks said.
Mr Brooks said that if the application were allowed to proceed, ArcelorMittal would have “unfortunately no choice but to leave Chatham Docks and cease operations in the UK, given the lack of a suitable alternative site”. “Deaf,” he wrote.
The Luxembourg-based steel company, chaired by Indian tycoon Lakshmi Mittal, is using the Kent site to supply reinforcement to the construction industry.
Mr Brooks said in the letter that the company's operations at Chatham Docks are responsible for around 30% of the UK's concrete reinforcement, making the site a “strategic asset” for the country's economy. . Its materials have helped build several high-profile infrastructure projects, including Crossrail, HS1 and Heathrow Terminal 5.
The steel group says the dock employs around 800 people and generates economic value worth £112,000 per worker, which is “significantly higher than the Medway average of £63,900. ” he claims.
ArcelorMittal declined to comment on Sunday. Peel Waters could not be reached for comment.
