Heathrow has signed a Memorandum of Understanding with Cardiff-based 7 Steel UK as it prepares its supply chain for a proposed expansion. The agreement sets out a path towards a long-term steel supply contract, although the airport’s expansion remains subject to approval.
Signed at the steelmaker’s Cardiff facility, the memorandum builds on a relationship stretching back more than 20 years. Over that period, 7 Steel UK has supplied Heathrow with more than 150,000 tonnes of steel, including material used to build Terminal 5.
Expansion could require up to 400,000 tonnes of steel
According to government estimates cited by Heathrow, construction could require up to 400,000 tonnes of steel. The airport hopes that demand will encourage investment in domestic steelmaking and support jobs across its UK supply chain.
The memorandum is an initial step towards a framework agreement and, ultimately, a long-term contract with 7 Steel UK. No contract value or specific supply volume for the company was announced.
Heathrow CEO Thomas Woldbye said: “If expansion is approved, the MoU we signed today can help revitalise UK steelmaking and drive economic growth in South Wales.”
“Our ambition to put Welsh-made steel at the heart of our expansion plans will create a pipeline of future orders for UK steel, and we hope that the scale of our project will lead the way for other large infrastructure projects to follow suit.”
Building on the Terminal 5 supply relationship
7 Steel UK operates an electric arc furnace in Cardiff and says it produces steel from 100% UK scrap. The company sees the prospective Heathrow work as a basis for further investment in its operations.
Carles Rovira, CEO of 7 Steel UK, said: “This new partnership creates a strong foundation for future investment, supporting the work that the 7 Steel team and the rest of the stakeholders are doing every day.”
The agreement follows Heathrow’s signing of the UK Steel Charter and extends its commitment to sourcing steel from domestic producers.
Welsh manufacturing set to benefit from airport investment
Heathrow says it spent £2.3 billion with suppliers across the UK’s nations and regions in 2025. It also cites projections that 60% of the economic growth benefits associated with building a third runway would be delivered outside London and the South East.
The steel partnership illustrates how the proposed airport development could generate work beyond the aviation sector, with Welsh manufacturing among the potential beneficiaries.
Industry body UK Steel and trade union Community welcomed the memorandum, pointing to its potential to support skilled jobs and future orders. For 7 Steel UK, that opportunity now depends on the expansion securing approval and the initial agreement progressing to a supply contract.
