New steel furnace not on Teesworks land despite claims

Teesworks Ltd is a private company involved with the regeneration of the former SSI Redcar steelworks which closed in 2015 which is situated on land adjacent to British Steel’s Lackenby beam mill. Their CEO Martin Corney said the decision to locate a new EAF at Teesside was “the direct result of a huge amount of hard work… to deliver a site where investors can move quickly and huge projects can be brought forward.”

A press release at the time from Tees Valley Combined Authority (TVCA) - whose subsidiary South Tees Development Corporation (STDC) owns 10 percent of Teesworks Ltd - heralded the plans for a new furnace “at Teesworks”.

However, since publishing details this week about the proposals for Scunthorpe and Teesside - which are "subject to appropriate support" from the UK government - British Steel has confirmed the project will be entirely on its own landholdings.

Tees Valley Mayor Ben Houchen praised Mr Corney and his Teesworks business partner Chris Musgrave at the time of the EAF announcement, saying: “This project would not have happened without our Joint Venture partners, who have been essential in delivering this once-in-a-generation investment.”

Asked what role Teesworks will play in the development of the new EAF, a spokesperson for British Steel said: “Teesworks would be an essential supplier to the proposed development as power for an Electric Arc Furnace at Lackenby would come via the Teesworks private wire network.”

Earlier this year The Yorkshire Post revealed how property developers Corney and Musgrave had set up a new company, Steel River Energy Limited, in order to supply energy to tenants across the Teesworks estate via private wire network. We also revealed how no paperwork relating to the company being set up was held by the public bodies concerned.

The new energy company is 10 percent owned by STDC, the same equity share as Teesworks Ltd.

When asked what expertise the property developers brought to a company that intends to sell high voltage electricity to industrial tenants, STDC told The Yorkshire Post: “Industry leading, expert private sector partners will be involved as required once we have concluded an agreement.”

They wouldn’t be drawn on the source of power for the private network, stating only that it will come “from multiple sources”.