19 January 2026

Teesside project reportedly picks Chinese steel, industry reacts

Decarbonisation project raises concern across the UK steel supply-chain.

 Ladle of Steel public sculpture by Steve Tomlinson, on the Middlesbrough Road roundabout on the A66, South Bank, a symbol of Teesside
Ladle of Steel public sculpture by Steve Tomlinson © Hazel Plater/Shutterstock

UK Steel and the Community Union have responded to reports that the Net Zero Teesside project has awarded a contract to a Chinese supplier, despite receiving substantial UK taxpayer funding and support.

Intended to deliver a large-scale gas-fired power station with carbon capture and storage, the Teesside based project had been expected to use local steel.

Gareth Stace, Director-General of UK Steel, says, ‘BP’s decision to buy 7,000t of Chinese steel, worth around £5mln for the Net Zero Teesside project, rather than sourcing it from British Steel just miles away, beggars belief. For a major, taxpayer-supported project, this is deeply disappointing and should never have been allowed to happen.’

Alasdair McDiarmid, Assistant General Secretary of Community Union, says, ‘Projects that benefit from public investment should prioritise British suppliers and support the British workforce. If we are serious about strengthening our industrial base, revitalising local economies across the nation and championing secure, quality employment in every region, then procurement decisions must reflect those ambitions in practice.’

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