The Government has welcomed a new multibillion-pound investment
programme from Heathrow Airport, which is expected to secure
thousands of UK steel jobs across the country by driving a
significant increase in demand for UK-made steel.
In the latest in a series of UK investment wins, Heathrow will
invest billions in a new expansion programme for new terminal
buildings, aircraft stands, passenger infrastructure and its
third runway plans, marking a major vote of confidence in the
Government's plan for growth after the Chancellor confirmed the
government's backing for Heathrow's expansion last month.
At an event hosted at British Steel's Scunthorpe plant today (12
February) Heathrow will also sign the UK Steel Charter, which
signals the airport's commitment to use UK-made steel wherever
possible as part of its investment programme.
The commitment represents a major win for the steel industry and
will help secure thousands of existing steel jobs both at
Scunthorpe and across the country. It will bring a huge increase
in demand for UK-made steel to supply Heathrow's expansion
project.
By its completion in 2008, the construction of Heathrow Terminal
5 had required 80,000 tonnes of steel, and estimates suggest
construction of a third runway could require 400,000 tonnes.
Industry Minister is expected to give a keynote
speech at Heathrow's launch event today to welcome the
announcement as a major step forward in the Government's growth
mission, with new investment crucial to kickstarting the UK's
economic growth and putting more money in people's pockets,
delivering on the Plan for Change.
Industry Minister is expected to say:
This investment is the latest in a long line of wins which our
Plan for Change has helped deliver, and not only secures
thousands of jobs but marks a major vote of confidence in our
homegrown steel sector and this government's Industrial Strategy.
Driving demand for UK-made steel is a crucial part of our
upcoming Steel Strategy, and by signing the Steel Charter
Heathrow will give a huge boost to steelmaking communities across
the UK and help us kickstart economic growth.
Alex Veitch, Director of Policy at the British Chambers
of Commerce said:
Expanding capacity at Heathrow is a key part of accelerating
economic growth – and today's announcement is great news for
British business.
It is real show of support for domestic steel production and
supply chains across the UK. As further infrastructure projects
are given the green light, many more opportunities can be seized
to boost British business and drive forward growth.
Gareth Stace, Director-General, UK Steel said:
The UK steel industry welcomes Heathrow's multi-billion-pound
investment programme, a major boost for British businesses and a
clear signal that the UK is open for growth. This transformative
investment will upgrade vital infrastructure, create jobs, and
strengthen the UK's position as a global hub for trade and
travel.
As part of this commitment, Heathrow has pledged to maximise the
use of UK-made steel with the UK Steel Charter, ensuring that the
benefits of this project are felt across the country. British
steelmakers produce world-class, high-quality products that
support major infrastructure, and Heathrow's decision to
prioritise domestic steel and British business reinforces the
strength and resilience of the UK supply chain.
This is a vote of confidence in British manufacturing, supporting
skilled jobs, driving investment, and helping to build a
stronger, more sustainable economy.
Heathrow's new investment follows the Chancellor announcement of
the Government's full backing of a third runway expansion in her
recent Growth Speech where she pledged to go further and faster
to kickstart the UK's economic growth.
The Government has been clear that a third runway could add
billions to a better-connected UK economy, deliver cheaper air
fares and fewer delays, and drive UK exports and investment to
new heights.
According to new research from the consultancy Frontier
Economics, a third runway at Heathrow Airport could increase the
UK's potential GDP by almost 0.5% directly by 2050, with over 60%
of that increase going to areas outside London and the South
East.
Using UK-made steel on construction at Heathrow will also give a
significant boost to the UK's steel industry for the long term,
which already supports over 75,000 jobs and contributes almost £2
billion a year to the economy.
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