A history of positive response

At the end of World War II it seemed unlikely that the UK steel industry was about to enter a long period of growth, given the fact that the post-World War I boom had been short.

Despite being criticised for profiteering, UK steel makers had worked tirelessly, contributing 97% of their output to the War and related purposes. However, since the War had provided no opportunity to focus on capital expenditure or on consolidation, there were fears that the industry might sink or stagnate.

BIRTH OF BRITISH STEEL

Initially, under the auspices of the Iron & Steel Control (set up during the war under the Ministry of Supply) and based on the recommendations of the 1945 Franks Report, a development plan for the steel industry was drawn up. Over the next two decades four more five-year plans were published, at the end of which the condition of the British steel industry had immensely improved. A succession of ambitious investment programmes were undertaken to build new blast furnaces and modern rolling mills (in particular hot strip mills). Production grew to keep pace with demand and reached a peak of 27 million tonnes of crude steel in 1965. However, problems caused by fragmented ownership continued until a solution was provided in 1967 by way of nationalisation under the Iron and Steel Act 1967. As a consequence, the British Steel Corporation was formed, which incorporated 90% of UK steel making.