A steel manufacturer is consulting on redundancies for 85 employees.
ArcelorMittal Kent Wire, based at Chatham Docks, began the process last week ahead of pulling out of the site on Pier Road.
ArcelorMittal Kent Wire is consulting on redundancies for workers at Chatham Docks, with all jobs at risk. Picture: Phil Drew
The area has been a battleground between Peel Waters, which owns the site and wants to redevelop it, and the businesses operating there.
It is thought that the final blow came when the area was included in Medway Council’s draft local plan for mixed use, including housing.
Peel Waters wants to build thousands of homes on the site, which sits next to Chatham Waters, a 950-home development which includes an Asda and a pub.
A spokesperson from ArcelorMittal Kent Wire said: “We have informed all employees of the decision to enter a consultation process, with all jobs at the site at risk due to the severity and scale of the challenges facing the business.
“We are fully committed to a fair and thorough consultation process and will not comment further on this topic until the consultation process is complete, and the outcome has been communicated to employees.”
Chatham Docks was designated for mixed-use development in the Medway Council draft local plan, and Peel Waters have an ambition to create 950-home development called Chatham Waters.
The steel manufacturer, which is the largest in Europe, has faced other difficulties, such as low demand, competition from China, and US tariffs and had previously warned that if the plans went ahead, they would likely leave the UK entirely.
Former Rochester and Strood MP Kelly Tolhurst (Con), who campaigned to save the jobs, shared her upset at the news.
She said: “I’m absolutely devastated for the people at the docks because these are jobs that aren’t being replicated locally for them.
“For some people, it will be life-changing. It’s not a booming jobs market at the moment, so for those people it’s going to be a really frightening time right on top of Christmas.”
Ms Tolhurst laid part of the blame for the redundancies at the door of Medway Council, saying the authority did not care about industrial jobs and the developer was not interested in meeting local needs.
The Save Chatham Docks campaign has long opposed Peel Waters’ plans for the Chatham Docks site
She added: “I do hold the political leadership responsible.
“We listened to Labour’s forked tongue when they supported the people in the docks, and what we’ve seen since they came to power locally is dancing around the issues, trying to blame the tenants for the situation.
“They had the power to designate Chatham Docks as a commercial dock and they’ve chosen not to.
“They sided with the landowner who wants to turn it into flats that won’t be sold to local people and maybe a few retail outlets that suits them but not the people of Medway.
“We are seeing an end to high-skill industrial jobs, manufacturing jobs. It’s bad for the area, it’s bad for the local economy, and it will be bad for the many businesses that supply into Chatham Docks.
In November last year, Peel Waters gained planning permission for its Basin3 business part on a section of the Chatham Docks site. Photo: Peel Waters
“Medway Council do not support manufacturing jobs, that’s not the kind of employment they want and it was clear they, and Peel Waters, wanted them [ArcelorMittal] out.
“But we are yet to see any kind of clear strategy about what kind of jobs they are actually focusing on getting here.”
The plan to close Chatham Docks by 2025 was first announced in October 2019. At the time, 800 people worked for various businesses on the site.
In response, a campaign called Save Chatham Docks was set up following widespread opposition, putting forward an alternative masterplan.
It set out how the site could maintain the businesses already on the site, but Peel Waters progressed with their own version.
Kelly Tolhurst, former MP for Rochester and Strood, says she’s “devastated” about the news and lays the blame at the feet of Medway Council and Peel Waters
In November last year, Peel Waters, the Manchester-based waterside gained planning permission for a business park on part of the docks, called Basin 3.
Prior to the election last year, Ms Tolhurst requested the decision be called in by Housing and Communities Secretary Michael Gove.
However, a decision had not been made when Labour took control and it fell to his successor Angela Rayner, who chose not to challenge Medway Council’s decision.
The application has been subject to a judicial review, which was heard at the High Court on October 29 and 30, but a ruling has not yet been made.
A spokesperson for Peel Waters said: “It is well documented that the lock gates leading into Basin 3 have long-standing, irreparable issues, which have limited the ability to accommodate certain operations.
“For over 10 years, we have tried to work with ArcelorMittal Kent Wire and other tenants to explore relocation solutions, including suggesting suitable local port locations that could meet their operational needs.
“Other occupiers have taken this opportunity and have successfully relocated, retaining jobs in the area.
“Subject to the outcome of the ongoing judicial review, we remain committed to delivering Basin 3 – a development that will provide over 300,000 sq ft of purpose-built, high-quality employment space, designed to create more jobs and attract businesses aligned with the council’s target growth sectors.
“Our plans have been purposely designed to integrate with existing communities and the university cluster, while making part of the Medway waterfront accessible to the public for the first time in its history.
“This includes new tree-lined walking and cycling routes, extending the coastal path, and creating a new accessible route from Basin 3 into Basin 1 and Basin 2, improving connections for the local community.”
UK law means that when a business makes 20 or more people redundant, it must initiate consultation proceedings 30 days before the first redundancy, giving the reasons and exploring possible alternatives.
Medway Council and Rochester and Strood MP, Lauren Edwards (Lab), were contacted for comment.