Britain Faces Steel Supply Challenge as Net Zero Pylon Boom Drives Demand

Wayne Bishop surveys the factory floor at Painter Brothers in Hereford, highlighting the advanced machinery powering its operations. Here, a CNC machine processes L-beams while a plasma cutter slices robust steel pieces, and an apprentice examines a high-tech fibre laser. Bishop notes that these upgrades have greatly improved productivity, a necessary development given the current surge in business.

Painter Brothers, a 105-year-old firm with a legacy that includes producing steel for major infrastructure such as the Skylon at the 1951 Festival of Britain, now focuses on manufacturing electricity pylon structures. With the UK preparing for a significant overhaul of its electricity transmission system to meet net zero commitments, demand for pylons is driving expansion. Painter Brothers supplies structures for 80 percent of the nation’s transmission towers, and demand is expected to rise sharply.

To reach net zero targets, an estimated 1,000 miles of new transmission lines and up to 6,000 new pylons will be required. Major investment, such as National Grid’s £30 billion allocation for the period 2025 to 2029, underpins this transformation. Much of the activity centres on boosting north to south grid capacity, delivering offshore wind energy from Scotland to urban centres in England. The expansion includes new lines through the Scottish Highlands, Borders, the North of England, and East Anglia.

Painter Brothers is preparing for growth, anticipating near doubling its output to as much as 20,000 tonnes annually with a second facility, and expanding its workforce. Currently operating at 95 percent capacity, the business is ramping up to meet unprecedented demand. However, a significant issue persists; only 2 percent of the raw steel processed at the Hereford site originates from the UK, with Spain, Turkey, and Italy supplying the majority. British mills are missing out on rapidly rising orders, a reversal for domestic industry.

High input costs driven by energy prices, carbon taxes, and labour expenses have eroded the competitiveness of UK steel producers. Since China has been driving down global prices through overproduction, and overseas rivals in Turkey offer cheaper alternatives, domestic suppliers struggle to compete on price. Policy interventions such as US and EU tariffs threaten British exports while imports now represent 70 percent of UK demand, a level unseen since the Great Depression.

Calls are intensifying for government action to support British steel through import quotas, carbon border taxes, and requirements for publicly funded projects to source a minimum of 30 percent of their steel domestically. Industry leaders argue these steps are essential to ensuring resilience and strategic autonomy, as protective measures proliferate globally. Without intervention, Britain risks becoming the only G20 nation without national steelmaking capability.

Recent government measures aim to lower steelmakers’ energy costs by 25 percent, but critics argue these merely shift expenses elsewhere. UK Steel is encouraging industry collaboration and procurement from domestic sources, launching digital tools to promote awareness of availability and product lines from British mills. Painter Brothers is currently trialling a supply partnership with British Steel, which has launched a campaign to promote homegrown steel and argues every tonne made in the UK supports jobs and economic growth.

As the net zero transition accelerates, the future of British steel hangs in the balance. The outcome may determine not only the shape of the nation’s infrastructure but also the long-term health of its industrial base.