Supplies at risk after ministers refuse to discuss Chatham plans

A key steel reinforcement supplier is “considering its next steps” after ministers refused to make a decision on redeveloping its only UK production site.

Steel giant ArcelorMittal, which says it produces 30 percent of the country’s steel rebar, said Construction news in May it will exit the UK market if plans to rebuild Chatham Docks in Kent go ahead..

However, the Ministry of Housing, Communities and Local Government (MHCLG) has decided not to consider the planning application, a government spokesman said. China.

In a statement, ArcelorMittal Kent Wire (AMKW) managing director Matt Brooks said the firm was “considering (its) next steps.”

He added: “We are extremely surprised by this view given the importance of the docks to the entire steel and construction industry.”

ArcelorMittal’s AMKW division has been producing valves at Chatham Docks since 1988, supplying some of the UK’s largest infrastructure projects including HS2, Thames Tideway and Crossrail.

Developer Peel Waters plans to develop part of the Chatham Docks industrial estate to create 31,000 square meters of adaptable workspace. The Basin3 project aims to attract businesses from the creative, manufacturing, technology and life sciences sectors through new green spaces and promenades.

In planning documents, Peel Waters said it was working to rehouse existing tenants, but ArcelorMittal said the waterfront location was ideal for sourcing raw materials from its parent company in Hamburg. The company also objected to the potential cost of the move after the firm was billed £7 million to move its premises 500 meters down the road in 2015.

This was previously stated by AMKW CEO Phil Taylor. China the firm submitted alternative proposals that would have created 100,000 square meters of industrial space on the site, but the council rejected them.

The steel company would lose 800 jobs if the plant closes, Taylor added.

In planning documents submitted in January, Peel Waters estimated his proposals would create a net increase of 430 jobs, taking into account the displacement of existing workers.

After Medway Council granted planning permission for Pool 3 in May, ArcelorMittal called on the new government to reconsider the project after the election. The plans failed to proceed during the election period after then local MP Kelly Tolhurst called for then housing secretary Michael Gove to intervene.

The council is expected to make a formal planning decision “early next week”, Peel Waters said.