Steel industry leaders in the United Kingdom have urged a greater emphasis on domestic sourcing amid the planned £19 billion upgrade to the national electricity transmission network. The initiative, known as the Great Grid Upgrade, aims to enhance the country’s power infrastructure by connecting energy from offshore wind farms and other renewable sources to new industrial sites and data centers, supporting the expansion of artificial intelligence and other emerging technologies.
Gareth Stace, director-general of the trade association UK Steel, emphasized the importance of involving British steel manufacturers in the construction of approximately 600 miles of new power lines and thousands of pylons. He warned of the risk that UK firms could again be sidelined, recalling how British companies were largely excluded from contracts in the previous £32 billion expansion of wind farms. Stace noted that UK Steel’s members had yet to receive clear information about National Grid’s procurement plans to enable them to participate competitively.
National Grid, a FTSE 100 company valued at around £56 billion, owns the electricity transmission network in England and Wales. As a publicly listed entity, it is not legally required to prioritize British-made steel unless there is a justified reason to do so, which has raised concerns among industry advocates. While government ministers face pressure to support domestic suppliers, particularly for critical infrastructure projects, there is reportedly apprehension about potential trade repercussions from the United States amid escalating geopolitical tensions.
In response to these concerns, Prime Minister Andy Burnham recently announced plans to establish a state-owned enterprise, the Great British Grid company, funded by £4 billion from the publicly backed Great British Energy investment vehicle. This new entity is intended to increase competition within the sector, lower costs, and accelerate connections to the power network.
Labour MP Clive Betts, deputy chairman of the Public Accounts Committee and representing a constituency with steelworks in Sheffield, underscored the national interest in prioritizing British steel. He argued that customers involved in these large-scale projects should seriously consider UK suppliers.
The call for enhanced support of British industry comes amid broader debates on domestic procurement policies in key sectors. The Ministry of Defence is reportedly reviewing a £2 billion contract for next-generation Skynet military satellites, with European aerospace group Airbus, which employs about 14,000 people in the UK, competing against US contractor Lockheed Martin. Additionally, concerns have been raised about UK companies potentially being overlooked in the development of small modular nuclear reactors, as manufacturers such as Rolls-Royce have appointed subcontractors from the Czech Republic and South Korea. Sheffield-based Forgemasters, a state-owned steelworks, is currently in discussions to supply components for these reactors.
National Grid stated it intends to collaborate with industry to maximize opportunities for British businesses as the project develops. A government representative reiterated its commitment to reindustrialization, noting recent measures to protect UK steelmaking and reinforce domestic supply chains, including those relevant to grid infrastructure.