In a major address delivered at British Steel Scunthorpe, Heathrow CEO Thomas Woldbye today responded to the Government’s strong support for expansion at Heathrow – including a third runway.
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.
Woldbye 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.
“A third runway is critical for the country’s future economic success, and I confirm we will submit our plans for a third runway to Government this summer.
“Ahead of then, as part of a phased expansion programme and supported by the Government’s clear backing, I am today confirming multi-billion-pound investment plans, 100% privately funded, to upgrade our terminal buildings, enhance passenger experience, and improve resilience and sustainability.
“This is vital investment and will ensure Heathrow remains globally competitive and a jewel in the country’s crown – the UK’s Gateway to Growth”.
Full details of the investment programme, phasing, and the pathway to a third runway will be part of Heathrow’s initial proposals submitted to Government this summer, but plans confirmed today will include new investment in:
- Terminal infrastructure: Heathrow will work with airlines and the regulator to finalise plans to invest in the capacity of Terminal 2 and make changes to optimise and increase passenger capacity in Terminal 5.
- Improving customer experience and punctuality: Reconfigure and improve the layout of the airfield, increasing the number of aircraft stands, to improve resilience and punctuality.
- Local transport connections and sustainable travel: The investment programme includes plans to further improve bus and coach connections to encourage sustainable and active travel options and benefit our local communities.
- Sustainability: New infrastructure will have improved environmental credentials and will use more sustainable sources of power, supporting the ambitious targets set out in Heathrow’s Connecting People and Planet sustainability strategy.
This privately funded programme to transform Heathrow’s current infrastructure, with early tangible benefits felt this year, will start with projects within the airport’s existing boundary and work towards a third runway.
Industry Minister Sarah Jones said: “This investment is the latest in a long line of wins which our Plan for Change has helped deliver, and not only supports thousands of jobs but marks a major vote of confidence in our homegrown steel sector and this government’s Industrial Strategy.
“Driving demand for UK-made steel is a crucial part of our upcoming Steel Strategy, and by signing the Steel Charter Heathrow will give a huge boost to steelmaking communities across the UK and help us kickstart economic growth.”
Heathrow also signed the UK Steel Charter today at British Steel Scunthorpe. The charter aims to maximise supply chain opportunities for UK steel producers.
The event will be attended and supported by Industry Minister Sarah Jones MP; Community Trade Union General Secretary Roy Rickhuss; Scunthorpe MP Sir Nic Dakin; representatives from the BCC, CBI and GMB Union, and supporters from across industry and politics.
Unite, the UK’s leading union, has welcomed the announcement today.
Unite believes that clear rules are urgently needed to ensure that all major infrastructure projects should use UK steel in order to protect the UK steel industry and to ensure that it prospers in the transformation to green steel.
This should begin with UK produced steel being classified as “critical national infrastructure”. Followed by the introduction of clear public sector procurement rules being introduced to ensure that all public sector projects use UK produced steel.
Sharon Graham, Unite general secretary said: “We welcome Heathrow’s commitment to UK produced steel and we look forward to further cooperation with Heathrow Airport and the government on the much needed third runway. This steel deal needs to become standard practice on all UK major infrastructure projects.
“It is madness that public money is still being used to buy foreign steel. Procurement rules must be rewritten to ensure that all publicly supported projects use our steel. Other nations have pursued these practices for decades there is no reason why the UK can’t follow suit.
“Protecting our steel industry is essential to boost our economy and in the interest of national security. With Trump introducing steel tariffs next month the government needs to act quickly.”
Zengwei An, British Steel CEO, said: “We’re proud to be backing a third runway and the proposed expansion of Heathrow.
“Major developments like this, which require huge volumes of steel, demonstrate why the UK must have a strong and vibrant steel manufacturing sector.
“As Britain’s only manufacturer of heavy constructional steel sections, and rail, we have a critical role to play in helping this country meet its many infrastructure needs and look forward to working with Heathrow, other customers, and the UK Government, to support investments which grow the British economy.
“Our colleagues in Scunthorpe and Teesside have a distinguished history of supplying world-class products into projects like Heathrow’s expansion, and we are incredibly excited by the potential of today’s announcement and the signing of the UK Steel Charter.”
