Tata Steelworks: Newport

I beg to move,

That this House has considered the future of Tata’s Cogent Power steelworks in Newport.

I am immensely grateful to have the opportunity to speak on behalf of the dedicated workforce at Tata’s Cogent Power plant, the Orb works in Newport, representatives of which are in the Public Gallery. They are most welcome.

The need is urgent. This is a steelworks threatened with closure by Tata and it is due to close at the worst possible time, just before Christmas. It is unique, as it is the only steelworks in the UK making electrical steel.

Losing the Orb plant would be devastating for our economy in south Wales. It would also be a huge missed opportunity. Does my hon. Friend agree that there is still massive potential for the plant?

My hon. Friend represents a steel community, too, and I completely agree with his point, as I will make clear in my speech.

With the investment and support it needs—there is a plan, which I will come to later—the plant could and should have a bright future, especially at a time when, due to the growth of electric vehicles and electrification generally, demand for this type of steel is only going to grow. It would be a travesty if we were to lose the plant, and my ask of Ministers—I welcome the Wales Minister here today—is that the Government do all they can with Tata to protect this national asset.

I should declare that my father worked in the steelworks throughout his working life and is a British Steel pensioner. As we speak about the future of our automotive sector and moving to electric cars, does my hon. Friend agree that it is simply short-sighted to be losing Orb at this moment?

I absolutely agree, and I will make that point later.

Tata announced that it would be closing Cogent Orb steelworks on 2 September, with the loss of 380 jobs. This has come as devastating news for a dedicated, highly skilled workforce and their families, and for the city of Newport as a whole, where Orb has been part of the landscape since 1898. I pay tribute to Community, Unite and other unions for the support they have given and continue to give to the workforce, and for their general fight to save our steel industry.

I congratulate my hon. Friend on securing this very timely debate. I represent a steel community in Scunthorpe, and we know exactly what it is like as a steel community to have these things happen. We stand side by side with the steel community in Newport. Does she think that the work the Community union and others have done through the Syndex report gives a possible way forward for the plant?

My hon. Friend is indeed a doughty and fantastic champion of his steel community, and the thoughts of our steel community are very much with his community and the difficulties it has had recently. I will talk about the Syndex report, because it is very important.

The attendance of my hon. Friends from Wales and fellow members of the all-party parliamentary group on steel and metal related industries represents the importance of the steel industry to us all. As my hon. Friend the Member for Torfaen (Nick Thomas-Symonds) said, many of us have a constituency interest but also a very personal interest. My parents met in the steel industry in Ebbw Vale, and my hon. Friends have close family who have worked in the industry, including my hon. Friend the Member for Cardiff West (Kevin Brennan).

Fewer work places are more ingrained into the life of Newport than Orb. Our iconic transporter bridge was originally built to carry Orb workers over the River Usk. There are street names in Newport such as Dudley, Walsall, Bilston, and Handsworth, and even the Wolverhampton Wanderers-based colours chosen for Newport County AFC commemorate the west midlands migration to Gwent initiated by the Lysaghts family moving their sheet steel production to Newport at the end of the 19th century. Orb played an important role in Newport in both world wars and, from the late 1960s onwards, its activities moved towards cold rolled and electrical steels, a field that became the site’s speciality, as it remains today.

Losing Orb would mean losing the electrical steels skills base that has been built up since the era of Harold Wilson’s “white heat” of technology, and at a time when electrical steels will be more in demand that ever before. Tata’s decision to close Orb, citing losses and wider challenges in the sector, will hit many people in our communities extremely hard. They include recent recruits such as an electrician who joined the company two days before the announcement and is one of 70 new starters over the last two years, and a long-time worker who says, “Orb works has been a part of my family for nearly 60 years. Between my father and brothers we have over 100 years’ combined service. The Orb paid for everything when I was a child and is now supporting my three children.”

I thank my hon. Friend and neighbour from Newport East for giving way, and for her powerful speech. This is an issue of importance to people in Newport West, Newport East and across south Wales, and it is a pleasure to hear her speaking about it. The potential closure of Orb in Newport will mean that hundreds of jobs are put at risk, and our people and communities need certainty. I reassure my hon. Friend of my commitment to work with her to save jobs in Newport. Does she agree that we need a level playing field for UK steel producers by addressing the energy price disparity, preventing steel dumping and investing in research and development, so that the British steel sector can compete and thrive globally?

My hon. Friend and neighbour is absolutely right, and those are many of the asks for which the all-party steel group in Parliament has been calling for many years. It is something on which the Government need to take more action.

Mickey is absolutely right. Although it is important to emphasise Orb’s proud heritage, this debate is not about nostalgia, but about the future. It is about calling on Tata and the Government to ensure a future for a plant with enormous potential at a time when demand for the type of steel Orb could and should produce is set only to grow. Orb is important not just to our community, but to the whole of the UK, because the works is the only plant in the UK with the potential, with investment, to produce the electrical steel needed for electric vehicle motors. The Government, too, say it is important.

Since they first got into power in 2010, the Government have been banging on about how they would be the greenest Government in history. Is it not time that the Government put their money where their mouth is and invest in Orb to bring about the electrical steel that we need and to start reinvigorating the electrical vehicle industry in this country?

My hon. Friend is absolutely right. The Government have said the electric vehicle industry is important to them, and they say it is a priority. In his first speech to the Commons after moving into No. 10, the Prime Minister spoke about his vision for the UK as the “home of electric vehicles,” something he also touched on regularly during his leadership campaign. In a recent response to a question I asked, the Prime Minister also stated his commitment to use UK steel in the supply chain for electric vehicles, but we need electrical steel to create an end-to-end supply chain for those vehicles. If the Prime Minister is serious about the UK being the home of electric vehicles, we must, as Community’s Roy Rickhuss has said, consider the Orb a national asset and step in to protect it.

My hon. Friend is making a really powerful speech. What she said about looking at history and the future is so important, and the dedicated workforce and plant have been so successful because they have encouraged innovation over the years. They have been strategic and looked forward. That is what the Government now need to help the plant do with electrical steel.

My hon. Friend is exactly right, and we need that investment to do it.

Attention has been given to electric car battery production —the Prime Minister mentioned the gigafactories needed to produce high volumes of battery products in his conference speech—but electric motors are an equally important part of the supply chain. They are built from the high-quality, non-oriented electrical steels that could be produced at Orb, and the demand for this type of steel is expected to increase tenfold by 2030.

The number of electric cars on our roads will grow and grow over the next decade. The UK Government are providing millions of pounds to support the roll-out of charging infrastructure, and it is imperative that we use UK steel in all this. The Government have awarded Jaguar Land Rover, which is owned by Tata, a £500 million loan guarantee to help the company sell electric vehicles. In this context, with the Government’s stated support for the electric vehicle industry, I ask what the Government can do for all. Electric cars need electric motors. Why should we have to import them? We have a site here in the UK that, with support, could be part of the supply chain.

We need UK steel every step of the way, and electrical steel is part of that. As members of the all-party group and the unions have long said, the industry can be a key part of building the infrastructure we need to green our economy in the future.

At Labour’s conference, we pledged to accelerate the electric vehicle revolution with 2.5 million interest-free loans for the purchase of electric vehicles, a new requirement for the Government car fleet to be 100% electric by 2025, and action on a private fleet. Labour is determined to ensure that the right conditions are in place for this revolution, and the Government should be, too. If the Orb works is not kept open, the potential to build a supply chain will be squandered. It is not an overstatement to say that the UK could lose its capacity to be a global leader in electric car manufacturing.

My hon. Friend is making a very powerful speech. The Government often criticise us for critiquing their failure to support the steel industry without proposing a constructive plan, but she has just outlined an absolutely compelling and viable plan. One of the vital parts of it is that we would be relocating the supply chain for hot rolled coil from IJmuiden to Port Talbot. Surely if the Government are talking about backing British business, they should back the Syndex plan.

My hon. Friend is exactly right. It is a very important and well-thought-out plan, and I hope Ministers are listening to it. The 2018 memorandum of understanding agreed with Tata in advance of the failed joint venture contained a commitment to reinvest the proceeds of the sale of any UK-owned assets back into the UK. Tata should honour the spirit of that agreement. That would leave a shortfall of just £30 million, and we could look to central and devolved Government to contribute to the new strategy. Given the role that Orb can play as a strategic business of the future, enabling the Government to deliver on their climate commitments, there is a compelling case for Government support.

The strategy advocated by Syndex includes three key aspects: a new annealing line at Orb, investment in automation to make Orb’s grain-oriented products more competitive, and relocation of the hot rolled coil supply chain from IJmuiden to Port Talbot.

I want to put forward a series of asks to the Government. First, will the Minister ask the Secretary of State to call a UK steel council urgently, with Orb at the top of the agenda? We have not had one since June 2018, and the need is urgent. Will Ministers commit to meet urgently with trade unions and local politicians to look at what can be done to support Orb and its workers at this time? Community has requested meetings with the Welsh and UK Governments to present the Syndex plan directly to them. Will the Minister and the Department for Business, Energy and Industrial Strategy agree to meet it?

The Prime Minister committed last month to ensure that UK steel forms part of the supply chain for electric vehicles. Will Ministers ensure that that actually happens? While I am on that subject, we now more than ever need a sector deal for steel—something we have been asking for for a long time.

This Saturday, hon. Members will be joining Community, Unite and other unions in a march through Newport to save Orb steel. We are fighting for it, and I hope everyone will join us. Orb is a site that could be underpinning a dynamic UK automotive industry, and could be at the cutting edge of new steel technologies. Newport, Wales and the UK would be worse off if the Government fail to work with Tata to grasp its enormous potential before it is too late. If the Government are serious about an industrial strategy, will they back up their words with proactive action?

It is a pleasure to serve under your chairmanship, Mr Hanson. I congratulate the hon. Member for Newport East (Jessica Morden) on securing this debate, which has given us the opportunity to come together to discuss a topic that is important not just for Newport but for the whole of Wales. She has always been, and was today, an energetic and passionate advocate for her constituents and those affected by the potential closure of Tata’s Cogent Orb plant.

It is clear that there is a shared understanding of the important role the steel sector plays in communities and its critical place as a foundation industry in the national economy, especially in Wales. That is evidenced by the number of Members attending this debate. I have heard their comments and the request to meet the unions. I understand that the Secretary of State for Wales has already been in contact with them, and I am more than happy to facilitate meetings. I will pass on the request for a meeting of the steel council. That is something we are always happy to do, and certainly if hon. Members request it. Those who have dealt with me previously know that I am only too happy to meet Members, particularly if it relates to matters in their constituencies that are this important. I would be happy to facilitate that.