The Prime Minister confirmed in a statement on 16 September that
Marcegaglia Stainless will be investing £50 million to build a new electric arc furnace (EAF) to upgrade its existing site in Sheffield. The new ‘state of the art’ EAF will increase annual plant productivity to over 500,000 tonnes of stainless steel products, bringing efficiency and environmental improvements, and creating 50 new jobs.
The existing EAF has been in place since 1977, producing stainless steel by recycling scrap steel. The new operation will be in implementation phase during mid-2026. This will be undertaken by
Primetals Technologies. Marcegaglia Stainless Sheffield produces semi-finished stainless steel, including billets, blooms and slabs, as well as stainless downstream wire rod and bar products.
Commenting on the statement from the Prime Minister on steel sector investment by Marcegaglia, UK Steel director general, Gareth Stace, said: “The investment by Marcegaglia Stainless Sheffield to renew its electric arc furnace delivers yet more highly positive news for the UK steel industry. Coupled with the investment agreement for
Tata Steel’s Port Talbot site last week, this brings a much-needed injection of funds into the UK steel sector, which will transition it into a more efficient and decarbonised industry.
”All that is needed now to make these investments count is for the Government to deliver the competitive business landscape and level playing field that our steelmakers need for a bright future. A good start to address competitiveness is to increase compensation from network charges on electricity to 90%, up from 60%.”