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Marcegaglia Stainless Sheffield to invest £50M in new electric arc furnace, creating 50 jobs

September 17, 2024

Marcegaglia Stainless Sheffield will invest £50 million in building a new Electric Arc Furnace (EAF) to upgrade its existing Sheffield site, as confirmed by the Prime Minister in a statement today.

The state-of-the-art EAF, set to be operational by mid-2026, will significantly enhance the plant’s productivity, increasing its annual capacity to over 500,000 tonnes of stainless steel products. This investment will not only improve efficiency and environmental performance but also create 50 new jobs in the region.

The new EAF will replace the current furnace, which has been in place since 1977 and has been instrumental in producing stainless steel by recycling scrap steel. The upgrade, to be carried out by Primetals Technologies, represents a key step in modernising the site’s capabilities and aligning with industry goals for a more sustainable and decarbonised future. Marcegaglia Stainless Sheffield specialises in producing semi-finished stainless steel products, including billets, blooms, slabs, and downstream wire rod and bar products.

Gareth Stace, Director General of UK Steel, welcomed the announcement, stating, “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.”

Stace also emphasised the need for the government to support these investments by improving the competitive landscape for UK steelmakers. “All that’s 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%,” he added.

The announcement of Marcegaglia Stainless Sheffield’s investment reflects broader industry efforts to modernise and reduce carbon emissions, signalling a positive trajectory for the UK’s steel sector. With significant investments and technological advancements, the UK steel industry is poised for a transformation, driven by efficiency, sustainability, and growth.