The world’s second-largest steel company, ArcelorMittal, has issued a warning to the UK government regarding a planning decision set to be made this week. In a letter addressed to Michael Gove, the levelling-up secretary, the company expresses concerns that the closure and redevelopment of part of Chatham Docks could have detrimental effects on the British economy and multiple strategic industries.
The letter, written by Matthew Brooks, the head of ArcelorMittal’s construction solutions arm in the UK, urges Mr. Gove to take immediate action and allow for further government scrutiny of the redevelopment proposals prior to Wednesday’s decision by Medway Council. According to Mr. Brooks, time is of the essence as “calling in” the application after the decision has been made will not be possible.
Should the proposals be approved, ArcelorMittal would be forced to leave Chatham Docks and most likely cease operations in Britain due to the lack of suitable alternative sites. This would also be the case for the majority of businesses at the Docks, resulting in significant impacts on the country’s manufacturing and construction industries. The company warns that this could lead to delays in critical national infrastructure projects and leave the UK vulnerable to international supply chain shocks.
The application in question, submitted by Peel Waters, a part of the industrial conglomerate Peel Group, seeks to replace part of the docks with housing and commercial facilities. Local planning officers have already recommended approval, as reported last week. ArcelorMittal currently uses the site in Kent to transport materials produced by its construction materials arm.
If the application is approved, Mr. Brooks states that it would “spell the end” for Chatham Docks and have a significant impact on the UK reinforcement industry. This would result in long-term harm and immediate consequences for the sector’s resilience and carbon intensity. ArcelorMittal, a global company with operations in over 60 countries, is a leading supplier of steel for industries such as automotive, construction, household appliances, and packaging. The company, based in Luxembourg and chaired by Indian businessman Lakshmi Mittal, has been involved in major construction projects in Britain, including Wembley Stadium, Crossrail, and the O2 arena in southeast London.
In their letter to Mr. Gove, ArcelorMittal expresses concern that Peel’s application for the redevelopment of Chatham Docks has not been thoroughly scrutinized and lacks public awareness. They believe that many key stakeholders are unaware of the consequences of the decision. As the largest operator at the Docks, the company firmly believes that the application should be rejected. They are requesting an Article 31 holding direction to allow for sufficient time to assess whether the application should be considered at the national level.
According to ArcelorMittal, Chatham Docks has a rich history as a thriving commercial port with a proud naval heritage, employing nearly 800 people and generating economic value equivalent to £112,000 per worker. This is significantly higher than the Medway average of £63,900. Mr. Brooks notes that the redevelopment plan would also result in the loss of £20 million in new investments and the potential creation of 2,000 jobs. However, these benefits cannot be realized while there is uncertainty surrounding the future of the company’s lease on Chatham Docks. Mr. Brooks also mentions that £5 million worth of investments have already been delayed due to Peel’s application.
As of Sunday, Peel Waters has not responded to requests for comment.
