Net Zero Teesside Awards £5M Steel Contract to Chinese Firm, Sparking UK Steel Industry Criticism
Net Zero Teesside has awarded a £5 million steel contract to Chinese firm Modern Modular Engineering and Construction Company, igniting criticism from UK Steel over the exclusion of domestic suppliers. The project, which aims to establish a gas-fired power station with carbon capture technology, is part of the UK government's decarbonization strategy and has a total estimated cost of £1.5 billion. Despite the backlash, Net Zero Teesside asserts its commitment to achieving over 50% UK content in its contracts.
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Net Zero Teesside has awarded a £5 million contract for approximately 7,000 tonnes of steel to Chinese supplier Modern Modular Engineering and Construction Company (MMEC), prompting backlash from UK Steel. This project, backed by BP and Equinor, aims to establish a gas-fired power station with carbon capture technology in Teesside, part of the UK government's decarbonization strategy.
UK Steel expressed concerns over the decision, emphasizing the need for clearer procurement policies that favor domestic suppliers. The project is expected to cost £1.5 billion and is supported by substantial public funding.
Political leaders and unions criticized the decision as detrimental to the UK steel industry, highlighting the availability of local suppliers like British Steel. Despite the backlash, Net Zero Teesside stated that it remains committed to achieving over 50% UK content in its contracts.
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