Heathrow’s British Steel announcement demonstrates importance of logistics

At an event on 12 February at Scunthorpe's British Steel works, Heathrow Chief Executive Thomas Woldbye made a significant commitment to UK steel as part of its expansion plans. Woldbye gave a speech and signed the UK Steel Charter – an agreement to use the company's steel in its new infrastructure.

The development follows the Government's indicated strong support for expansion of London Heathrow, including a third runway. Mr Woldbye announced the largest private investment programme in Heathrow’s history and confirmed the airport is developing proposals for a third runway to share with Government by summer. Heathrow also signed the UK Steel Charter which aims to maximise supply chain opportunities for UK steel producers.

Logistics UK's CEO David Wells OBE, who attended the event, said: "Heathrow's Gateway to Growth event saw CEO Thomas Woldbye unveil a bold new vision for the future of UK infrastructure.

"The multi-billion-pound phased investment announced will not only upgrade existing infrastructure but also lay the foundation for a third runway, all through 100% private funding.

"Logistics will play a huge role in making the project a success, delivering the UK steel, the materials and equipment necessary for effective construction to the site. This ambitious plan is set to boost the UK's economy and create jobs. I can't wait to see the transformation.

"It was great to meet and chat with Minister of State at the Department for Business and Trade and the Department for Energy Security and Net Zero Sarah Jones and Parmjit Dhanda, Executive Director at Back Heathrow."

Also attending the event in Scunthorpe were Industry Minister Sarah Jones MP, Community trade union General Secretary Roy Rickhuss, Scunthorpe MP Sir Nic Dakin (Labour), Senior British Steel representatives; representatives from the British Chamber of Commerce, Confederation of British Industry (CBI) and GMB Union, and supporters from across industry and politics.

Heathrow Airport's plans to use steel from Scunthorpe for its upgrade work is a "vote of confidence" in the area, according to the town's MP.

The news comes amid uncertainty for steel workers after the town's two blast furnaces were earmarked for closure in 2023, with plans to replace them with more energy-efficient alternatives.

Mr Wolbye said: "This privately funded programme will upgrade existing infrastructure while laying the groundwork for a third runway, boosting UK investment and economic growth, with tangible benefits felt this year. Heathrow is proud to answer the Chancellor's call to get Britain building."

Published On: 13/02/2025 15:51:58

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