Chatham Docks steel plant puts 85 jobs at risk amid redevelopment dispute

SEATTLE (Scrap Monster): The future of 85 workers at a long-established steel manufacturer in Chatham has been thrown into doubt after ArcelorMittal Kent Wire confirmed it has begun consulting staff on potential redundancies ahead of leaving its Pier Road site.

The company, part of Europe’s largest steel-producing group, said all roles at Chatham Docks are now at risk as it faces “severe and wide-ranging challenges” including falling demand, mounting global competition—particularly from China—and the ongoing impact of US tariffs.

The consultation comes as the long-running battle over the future of Chatham Docks intensifies. Peel Waters, which owns the site, is pursuing major redevelopment plans that would transform the area from an industrial hub into a mixed-use waterfront district.

Redevelopment plans push industry to the brink

Peel Waters’ proposals include a large business hub—known as Basin 3—and, ultimately, thousands of homes across the wider docklands. A 950-home scheme at nearby Chatham Waters, featuring a supermarket and pub, has already been delivered.

ArcelorMittal Kent Wire was among several dockside businesses that objected to the redevelopment programme, arguing that the loss of industrial space would leave companies with nowhere suitable to operate. The manufacturer had previously warned it might have to exit the UK altogether if forced off its Chatham base.

The planning dispute remains tied up in legal proceedings, with a judicial review of Medway Council’s May 2024 approval for Basin 3 heard in the High Court in October. A ruling is still pending.

Political fallout and local anger

Former Rochester and Strood MP Kelly Tolhurst, who campaigned to protect dockside jobs, said the news would have a devastating impact on local families.

“This is a really frightening time, especially so close to Christmas,” she said. “These are skilled industrial roles that simply aren’t being replicated locally. For many people, this will be life-changing.”

Tolhurst criticised Medway Council’s approach, claiming the authority had failed to prioritise the area’s industrial workforce. She argued that including the docks within the council’s draft local plan as a future mixed-use zone had effectively sealed the fate of longstanding tenants.

Developer insists relocation support has been offered

Peel Waters maintains it has spent a decade trying to help businesses remain in the area, including identifying alternative local port sites capable of supporting industrial operations.

A company spokesperson said it remained committed to the Basin 3 project “subject to the outcome of the ongoing judicial review”.

Uncertain future for dockside industry

The consultation period marks what could be the beginning of the end for steel manufacturing on the Chatham waterfront, once a core part of the local economy. With redevelopment pressures mounting and global market conditions deteriorating, workers now face a prolonged period of uncertainty as they await the outcome of both the company’s consultation and the court’s decision.

Courtesy: www.themanufacturer.com