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REDCAR BLAST FURNACE: KEY CONSIDERATIONS SUMMARY

Summary of technical, financial and economic considerations around


the retention of the Redcar Blast Furnace
Prepared for the Teesworks Heritage Taskforce
by the Tees Valley Combined Authority

Introduction This briefing sets out the most pertinent points from the
financial and economic cases for the retention and demolition
of the Redcar Blast Furnace. It was created to aid the
understanding of the Teesworks Heritage Taskforce in its
consideration of the heritage assets on the Teesworks site,
alongside consultation and expert opinion.

Extremely At present, the Blast Furnace complex is in an extremely


dangerous dangerous condition wholly unsuitable for safe public access.
condition
The current condition of the furnace complex poses a risk for
trained and competent structural inspectors and it is proving
ever more challenging for them to inspect the structures for
defects and to monitor known defects within the structures.
The overall stability of the Blast Furnace complex will only
worsen without intervention.

Steps that would enable the blast furnace to be developed so


that visitors can be admitted are outlined in the South Tees
Development Corporation (STDC) Redcar Blast Furnace
Visitors Centre Suitability Study.

£35,230,000 to The cost of retaining the Blast Furnace plus building and
preserve the blast operating a visitor centre for ten years is estimated to be
furnace for ten £35,230,000. This is based on fixed costs of £25,410,000
years and £982,000 annual running costs. These figures are based
on the STDC Redcar Blast Furnace Visitors Centre Suitability
Study and indicative costs provided by STDC.

827 jobs could be The Business Case for the Regeneration of the STDC Site
lost by retaining (2020), as submitted to Government, shows that the blast
the blast furnace furnace site of 20 acres has the potential to sustain 516 direct
jobs and as many as 827 when indirect and induced effects
in the wider economy (supply chain etc) are considered.

1
Six jobs could be The STDC Redcar Blast Furnace Visitors Centre Suitability
created from a Study bases its assumptions on six jobs being created in the
visitor centre visitor centre. This could be considered a conservative
estimate. This is 821 fewer jobs than STDC plans to create
on the Blast Furnace site.

£161.4 million A Green Book Analysis based on figures from the STDC
boost without the Business Case shows that the 20-acre Blast Furnace site, if
Blast Furnace developed as planned, would add £161.4 million to the Tees
Valley’s economy over ten years.

Lost Investment Expenditure on retaining the Blast Furnace and associated


Opportunity heritage support will not deliver sufficient financial return to
allow reinvestment in other Teesworks job creation. The
capital investment in retaining the blast furnace would reduce
the overall investment pot secured from Government to circa
£100m, meaning that only 80% of the impact would be
realised over the original programme period.

Appendices 1. South Tees Development Corporation (STDC) Redcar


Blast Furnace Visitors Centre Suitability Study
2. Outline economic appraisal of the possible retention
of the Redcar Blast Furnace as a visitor attraction
3. Indicative costs excluded from the Redcar Blast
Furnace Visitor Centre Sustainability Study (2020) –
Provided by the South Tees Development Corporation
4. Confidential: Full Business Case for South Tees
Development Corporation: Site Regeneration

2
REDCAR BLAST FURNACE: OUTLINE ECONOMIC APPRAISAL
Outline economic appraisal of the possible retention of the Redcar Blast
Furnace as a visitor attraction - Prepared for the Teesworks Heritage Taskforce
by the Tees Valley Combined Authority

Scope of this document


This document facilitates the comparison of actual and opportunity costs related to the
Retention of the Blast Furnace.
This document is based on the findings of the following independent studies:
• STDC Masterplan (2019);
• Business Case for the Regeneration of the STDC site (2020); and
• Redcar Blast Furnace Visitor Centre Sustainability Study (2020)
These documents are supplemented by indicatives costs for exclusions noted in the
Redcar Blast Furnace Visitor Centre Sustainability Study, provided by the South Tees
Development Corporation.
Assumptions:
The Masterplan clearly articulated a heritage offering at the Blast Furnace Site and
allotted 20 acres to address an unspecified function and demand.

The Redcar Blast Furnace Study reviewed the suitability of the Blast Furnace site for
a Visitor Centre and the following aspects were noted:
• Retention Capital Costs: £20.8m (this assumes that the entire 20 acre site
is utilised);
• Construction of a Visitor Centre: £2.6m (800 sq m visitor centre);
• Ongoing costs £0.9m per annum.

The following impacts are noted:


• Retention Only: Gross Direct Cost: £20.8m: NPC: £15.45m (assuming 25%
local sourcing of labour and materials (circa £4m incurred in year 1) and
secondly the proceeds of scrap metal from redundant parts of the Blast
Furnace (circa £1.35m)).
• Retention plus provision, maintenance and operation of a Visitor Centre
(No Revenue Stream) (10 year Economic Life): Gross Direct Cost: £32m :

1
NPC: £23.85m (assuming 25% local sourcing of labour and materials (circa
£4m incurred in year 1) and secondly the proceeds of scrap metal from
redundant parts of the Blast Furnace (circa £1.35m)).
• Retention plus provision of a Visitor Centre and assumption of 40,000
visitors by year 4 with average spend per visit £6.50: Gross Direct Cost:
£32m : NPC: £22.15m. Assumptions based on Darlington Railway Museum
as the most directly comparable proposition.

Even under the most optimistic projection for an onsite Heritage Centre (and assuming
only negligible displacement with existing provision, such as Kirkleatham Museum), a
relatively high number of visitors and no other land costs: this option creates a net
present cost over the economic life of the project of: £22.15m (2020 prices)).

The STDC Regeneration Study did not specifically discuss the direct costs related to
the demolition of the Blast Furnace. Rather, it considered that all redundant assets
would eventually be demolished, with the economic surplus being invested in
subsequent phases of demolition and redevelopment. The Blast Furnace site is within
the North Zone, adjacent to the Net Zero Teesside Project and part of the 100 acres
ascribed to clean technology related advanced manufacturing.

The STDC Regeneration Business Case confirms that if fully developed it will have
the following outputs: 121,406 sq m of specialist business accommodation and 2,583
advanced manufacturing jobs, once fully operational. The report goes on to identify a
wider (and very prudent) multiplier effect of 0.6, meaning that total direct, indirect and
induced jobs could equate to: 4,133 or £200m of additional GVA per annum (prudently
using regional average GVA per head) once fully operational.

To put this into perspective: Land Parcel R1a, which contains the Blast Furnace (100
acres), accounts for circa 15% of the total site set aside for the development of the
clean technology advanced manufacturing cluster, the development of which has two
interlinked criteria: pipeline of accessible land and creation of co-located integrated
supply chain (minimising logistics and maximising circular economy solutions).

As well as the identified direct costs of retaining the Blast Furnace and provision of a
visitor centre, there are also a number of other opportunity cost scenarios which need
to be considered:
• Opportunity cost of using 20% of the land: Pro rated, retention of the blast
furnace could reduce direct and indirect employment by 516 and 827 respectively, or
a reduction in anticipated GVA per annum of £24.4m (on full occupancy in year 10 in
2020 prices and including scrappage value of £5.4m);

2
• Opportunity cost to investment on adjacent advanced manufacturing site: Vivid
Economics employment land assumptions were based on sizeable land parcels (this
is the third largest such parcel of land ascribed for productive purposes). Reducing
the land envelope diminishes flexibility of use and consequently demand. At the very
least, this could mean a delay in uptake rate (10%), with a prudent assumption being
that the site would be fully occupied by year 11 instead of year 10. An
underperformance of 10% over the course of the development plan (potentially circa
£88m of lost output over 10 years); and
• Opportunity cost of loss of recyclable investment fund to entire STDC site: As
noted above the STDC regeneration model was predicated on using £124.7m of public
sector funds to kick start the development of the Teesworks site. In the early stages,
investment would be into those activities which were commercially viable and would
therefore produce a return on capital which could be subsequently used for
reinvestment (ultimately paying for the demolition of the Blast Furnace). Expenditure
on retaining the Blast Furnace and associated heritage support has been
demonstrated not to deliver the necessary financial or economic return (the most
optimistic being a net cost of £23.5m after 10 years of operation). A capital investment
in the Blast Furnace of £23.4m would, therefore, reduce the overall investment pot
down to circa £100m, meaning that only 80% of the impact would be realised over the
original programme period.

Note on methodology
In order to facilitate comparison between options, common costs (capital and
operational) and benefits (GVA per job, visitor numbers and spend and scrappage)
were identified and applied. A consistent programme period was also applied, based
upon the standard economic life of a visitor centre and costs and benefits were
discounted over that period using the Green Book approved 3.5% discount rate. This
led to easily comparable NPC/NPV estimates for all options with attributable costs and
benefits. A number of scenarios (opportunity costs) were also developed, but kept
separate from the cost benefit analysis, as the magnitude of potential scale of impact
would obscure vital messaging between options.

Conclusion
In summary, the Blast Furnace site of 20 acres has the potential to sustain 516 direct
jobs or 827 (direct, indirect and induced) jobs in the wider economy, equating to a Net
Present Value of £161.4m. Retention of the Blast Furnace and investing in a Heritage
Centre would equate to a Net Present Cost of (£22.15m) over a similar 10 year period.
In addition, there may be further opportunity costs to the wider Teesworks investment
plan by spending in less productive activity, thereby reducing the overall investment
pot by 20% with the possibility that only 80% of the impact would be realised over the
original programme period.

3
Possible Next Steps
The Teesworks Task Force may wish to request a Business Case to consider different
Heritage-based offerings. The Steel Heritage Business Case would utilise the findings
of the Taskforce to provide a detailed Option Appraisal for pans outlined in its final
report.

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TECHNICAL SPECIFICATION (/)


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for
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SOUTH TEES DEVELOPMENT CORPORATION


REDCAR BLAST FURNACE
VISITORS CENTRE SUITABILITY STUDY
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1 INTRODUCTION
2 SCOPE OF WORK

File: RBF condition assessment R01.docx


Technical Specification

6 PROPOSED VISITOR CENTRE


Visitors Centre Suitability Study

3 BLAST FURNACE LAYOUT & TERMINOLOGY


4 BLAST FURNACE – CONDITION ASSESSMENT
Table of Contents

5 CORRECTIVE AND STABILISATION WORKS – COST BASIS

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1 Introduction
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The purpose of this report is to assess the current condition of the Blast furnace proper structure
to enable a determination to be made into the suitability for a visitors’ centre to be established.
and shall be prosecuted.

2 Scope Of Work
Review of the current status of the blast furnace proper structure only, to allow safe access
for visitors.

Approximate cost to upgrade / modify the existing structure to allow safe access for
visitors.
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Identification of a suitable location for a viewing platform together with approximate costs.
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3 Blast Furnace Layout & Terminology


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4 Blast Furnace – Condition assessment


собственностью.

Overview
Based on an visual inspection made on the 16th September 2020 utilising the access routes
that had been deemed safe to use, it can be seen that the condition of the blast furnace varies
dependant on its elevation and exposure to climatic conditions. The majority of access routes
are in a severe state of dilapidation and are cordoned off to prevent injuries occurring. The
major risks throughout the whole blast furnace site can be categorised into two areas.
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1, Items falling from height,


2, Persons falling from height
Due to the risks mentioned above, routine condition assessments of the structures are
becoming increasingly challenging due to the unsafe conditions of access systems and
building fabrics. The condition of the blast furnace complex shall only further deteriorate with
time.
At present the lower and middle blast furnace support structure are in an adequate condition to
fulfil their duties. The furnace top tower structure is undergoing severe corrosion, which if left
unattended shall accelerate, lead to failure and its inability to support the furnace top
equipment and the dirty gas system.
The building fabrics are in a very poor state of repair, especially around the casthouses and
ancillary sections of the plant. It is evident that many items have fallen from considerable
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height and shall continue to do so. The loss of sheeting / cladding shall lead to an increased
© Primetals Technologies Limited

risk of structure / framework collapse.


Corrosion mechanisms around the blast furnace are now very well established. This is more
and shall be prosecuted.

noticeable on the furnace top where it is exposed to external weathering events. The majority
of painting systems on the steelwork structures have decayed to a point where pitting
corrosion and crevice corrosion is prevalent. This shall eventually lead to the failure of
structures.

Blast furnace lower support tower


The lower support tower of the blast furnace is a double slope structure in excess of 400te.
From the available vantage points the tower structure showed no obvious signs of degradation
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or deformation that could immediately affect its load bearing capacity. It is anticipated that
small repairs would need to be conducted to maintain its integrity.
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Blast furnace middle support tower


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The middle support tower of the blast furnace is the largest structure of the blast furnace and is
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in excess of 900te.
The top section of the middle support tower carries the load of the dirty gas system and
transmits this load through the lower tower structure to the foundations. From the available
собственностью.

vantage points the lower section of the middle tower structure showed no obvious signs of
degradation or deformation that could immediately affect its load bearing capacity.
The top section of the middle support tower is exposed to the elements and the paint system
has deteriorated. The structure is now undergoing severe pitting and crevice corrosion and has
structural sections that have failed in places. The connecting splice plates of the tower
structure show evidence of laminations and deformation at the joints.
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Middle tower structure (upper section) heavily corroded Pitting corrosion and splice deformation on middle tower
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Blast furnace top support tower


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The furnace top tower is a structure in excess of 400te and incorporates a double outrigger
crane. The top tower support provides the support for housing the furnace charging equipment
and shall be prosecuted.

and also the access systems to the bleeder platform.


The top tower structure paint system has deteriorated, and the structure is now undergoing
severe pitting and crevice corrosion and has structural sections that have failed in places. The
connecting splice plates of the tower structure show evidence of laminations and deformation
at the joints.
The outrigger crane splice plates are showing signs of deformation on the beam webs. This is
evident at all four joints.
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Pitting corrosion and failed section on beam Outrigger crane splice plate deformation
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Outrigger crane support heavily corroded


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Casthouses
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The building fabrics of the casthouse are in an extreme state of degradation due to loss of roof
and wall sheeting. The exposed supporting purlins are showing signs of damage and
and shall be prosecuted.

corrosion. The west casthouse roof has experienced almost a complete loss of sheeting and
the east casthouse has experienced partial loss and has many items of sheeting that have
failed and are about to fall to ground. The wall sheeting’s are in the initial stages of failing with
partial loss. The loss of wall sheeting shall only be exacerbated due to the loss of roof
sheeting.
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West casthouse roof West casthouse wall sheeting


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East casthouse roof

Below the casthouse floor, the supporting structure is in good condition with the refractory
brick protection still in place. The end connections to the casthouse floor look in reasonable
condition.

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On the casthouse floor, the casthouse machines look in reasonable condition. Fallen roof
sheets are evident in many areas of the casthouse floor. The iron and slag runners have been
and shall be prosecuted.

backfilled to allow for a level area. Pigeon carcasses and excrement is present in many areas
of the casthouse floor.
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The tuyere platform is in good condition with the steelwork and its connections showing no
obvious signs of serious degradation. The tuyere platform floor is complete with its refractory
and concrete in good condition.
собственностью.

All 36 tuyere stocks and their respective copper cooling elements are in position.
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Tuyere platform and tuyere stocks

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Main charge conveyor


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The main charge conveyor supporting structure is showing signs of serious degradation due to
corrosion on the trestles towards the head end of the conveyor. Support trestle bracings have
and shall be prosecuted.

completely failed in places.


The trestles towards the tail end seem to be in a reasonable condition.
The gantry support frames are collecting dust and debris in the webs of the structural sections
which is increasing the corrosion rate in these areas with some sections already holed.
The conveyor belt has been removed to reduce the overall load exerted on the structural
supports.
The conveyor sheeting is in reasonable condition with only small sections of flashing missing.
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допускается и преследуется по закону.


собственностью. Неразрешенное

Support trestle heavily corroded at bolted connection Support trestle failed bracings
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Support trestle heavily corroded braced connection Gantry frame supports

PT No: Rev: Page:


E.ZX0M 00 11/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

Off gas system


© Primetals Technologies Limited

The off-gas system comprising of the offtakes, uptakes, breeches and downcomer are in a
poor state of repair and are showing signs of pitting corrosion. The rate of corrosion is more
and shall be prosecuted.

prevalent at the exposed areas. As the furnace is in the cold condition and with the presence
of chlorides from the North Sea the rate of corrosion is expected to increase significantly. With
sections of staircase and walkways attached to the off gas system, a deterioration of this
system would reduce its ability to support items attached.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не
пользование

допускается и преследуется по закону.


Неразрешенное

Downcomer corrosion Corrosion on the Breeches


собственностью.
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Offtake corrosion

PT No: Rev: Page:


E.ZX0M 00 12/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

Access systems
© Primetals Technologies Limited

The majority of the access systems (staircases, ladders and walkways) throughout the blast
furnace complex are in an extremely poor state of repair. Many access systems have been
and shall be prosecuted.

cordoned off as they pose a risk to users. Due to the limitation of access throughout the
complex there are many areas that can’t be conventionally inspected due to the safety
concerns. The following areas were unavailable for inspection due to access restrictions;
Hot Blast Stoves
Dustcatcher
Gas cleaning plant
Fume extraction plant
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не

Due to the access restrictions, the above-mentioned areas could only be inspected from a
distance.
The main defects noted on the access systems include:
пользование

Heavily corroded and holed stair stringers


допускается и преследуется по закону.

Heavily corroded and detached stair treads


Неразрешенное

Heavily corroded and holed handrails, standards, mid rails and kick flats
Sharp edges on handrails, mid rails and kick flats
собственностью.
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Staircase with heavy corrosion and holed members Typical stair tread in the process of failing

PT No: Rev: Page:


E.ZX0M 00 13/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

Ancillary plant and infrastructure


© Primetals Technologies Limited

The ancillary plant surrounding the blast furnace is in a state of disrepair and has many
risks for people accessing the area. The major risks like the rest of the plant are items
and shall be prosecuted.

falling from height or persons falling from height.


The sheeting to buildings is failing in many areas and this is exposing the inner structures
and workings and shall eventually lead to a complete failure of the buildings fabrics.
The majority of column footings for the structures, gas mains and ductwork are covered in
debris that shall accelerate corrosion and eventually lead to failure. The supporting
steelwork is showing advanced stages of corrosion and many members are unserviceable
with holed sections evident. Access systems around the ancillary plant cannot be used due
to the unsafe conditions.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не

Cable containment in many areas has failed and cables are left unsupported. These cables
shall eventually fall to ground.
Vent pipes around the stoves area are in a perilous unsecure state as nearly all have
пользование

heavily corroded or failed pipe supports. The waste gas main chimney in the stoves area is
showing signs of heavy corrosion with holed plate work in the top section.
допускается и преследуется по закону.
Неразрешенное

Coke oven gas pipework throughout the blast furnace area is under a nitrogen purge due
to the remnants of crystalline naphtha deposits within the pipework. This pipework is in a
poor state of repair with leaks evident.
собственностью.
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Fume extraction filter plant – sheeting loss Fume extraction – exposed filter bags

PT No: Rev: Page:


E.ZX0M 00 14/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die Содержание настоящего листа является нашей интеллектуальной © Primetals Technologies Limited
unbefugte bzw. bestimmungswidrige Verwendung dieser собственностью. Неразрешенное пользование настоящей
документацией или пользование таковой не по назначению не The content of this sheet is our copyright property.
Unterlage ist nicht gestattet und wird gerichtlich verfolgt. The unauthorized use of this documentation or use
допускается и преследуется по закону.
contrary to its intended purpose is not permitted
and shall be prosecuted.

PT No:
E.ZX0M
E.ZX0M

File: RBF condition assessment R01.docx


Cable containment failure
Technical Specification

Holed gas main support trestle


Visitors Centre Suitability Study

Waste gas chimney, heavily corroded and holed plate work

Rev:
00
Approved

Page:
Primetals Technologies Limited

Blast Furnace
Iron & Steel Making

Vent pipes with corroded / failed support brackets

Refractory heatshield with fallen refractory material


Excessive build-up of material around column footings

Printed: 2020-10-23 14:17


15/21
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

Conclusion
© Primetals Technologies Limited

At present the blast furnace complex is in an extremely dangerous condition and is unsuitable for
allowing access to the public.
and shall be prosecuted.

The current condition of the furnace poses a risk for the trained and competent structural
inspectors and it is proving evermore challenging to inspect for defects and monitor known defects
within the structures.
The overall stability of the blast furnace complex shall only worsen without intervention.
To enable the blast furnace to be developed so that visitors can be admitted, the following shall
need to be undertaken to ensure the furnace’s integrity.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не

1. Remove all immediate risks of items falling from height.


2. Repair / reinstate access systems.
пользование

3. Conduct thorough structural inspection.


4. Conduct Refurbishment & Demolition survey for the presence of asbestos and take
допускается и преследуется по закону.

appropriate action to remove or encapsulate.


Неразрешенное

5. Repair deficiencies as per structural inspection report. Design considerations to be made


for application of temporary works during repairs.
6. Implement corrosion protection systems (Coating and Cathodic) and monitor.
собственностью.

7. Demolition of ancillary buildings / systems.


8. Develop and implement a maintenance strategy to maintain the blast furnace integrity and
prevent further degradation.
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

PT No: Rev: Page:


E.ZX0M 00 16/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

5 Corrective and stabilisation works – Cost Basis


© Primetals Technologies Limited

and shall be prosecuted.

The costing basis has been calculated so that the following entities of the blast furnace are
retained, and work undertaken to stabilise the structures and corrosion mechanisms: -

Furnace proper.
Main charge conveyor.
Casthouses.
Furnace top and off gas system.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не

Dustcatcher and gas cleaning plant.


Clarifier basin.
пользование

Hot blast stoves.


допускается и преследуется по закону.
Неразрешенное

The following entities have been costed for demolition: -

Fume extraction plants.


собственностью.

Slag granulation and pelletising plants.


Water treatment plant (excluding clarifier).
All Heat exchangers and cooling towers.
All brick construction buildings.
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Waste gas chimney.


Bustle main vent chimney.
Clean gas main after the gas cleaning plant.
Cold blast main.
All coke oven gas, nitrogen and natural gas pipelines throughout all areas of the furnace.
All vent pipes.
All storage tanks.
All ancillary steel structure buildings.

PT No: Rev: Page:


E.ZX0M 00 17/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.
© Primetals Technologies Limited

Project Costs
To undertake the works required to allow visitor access to the blast furnace the following budget
and shall be prosecuted.

costs shall be considered.

Corrective works required to stabilise structures and create safe access £6,500,000
Inclusive of all plant, equipment and materials.

Corrosion protection (Coating and Cathodic systems) £2,100,000


Cathodic protection for column footings and lower steelwork.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не

Coating protection for all other areas.


пользование

Demolition of existing ancillary entities £5,400,000


допускается и преследуется по закону.

As per item list on page above.


Неразрешенное

Site CDM infrastructure and management, consultancy and design works £6,800,000
собственностью.

Site establishment and security.


Management, supervision & staff.
Refurbishment and demolition survey.
Design (stabilisation and temporary works).
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser

Architectural heritage design.


Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

Temporary works management.


Waste Management.

Visitors centre £2,600,000

Area clearance, hard standing and safe route.


Building including utilities and fire protection.

Disabled access.

Total £23,400,000

PT No: Rev: Page:


E.ZX0M 00 18/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die Содержание настоящего листа является нашей интеллектуальной © Primetals Technologies Limited
unbefugte bzw. bestimmungswidrige Verwendung dieser собственностью. Неразрешенное пользование настоящей
документацией или пользование таковой не по назначению не The content of this sheet is our copyright property.
Unterlage ist nicht gestattet und wird gerichtlich verfolgt. The unauthorized use of this documentation or use
допускается и преследуется по закону.
contrary to its intended purpose is not permitted
and shall be prosecuted.

PT No:
Exclusions

E.ZX0M
E.ZX0M

File: RBF condition assessment R01.docx


foundations.
Technical Specification

General site security.


Visitors Centre Suitability Study

Asbestos removal or encapsulation.

Scrap processing from disposal area.

Rev:
The above costs do not include for any scrap recovery credits.

00
Approved

Recovery credits on copper cooling elements from within the furnace.

Page:
Primetals Technologies Limited

Blast Furnace
Iron & Steel Making

Printed: 2020-10-23 14:17


19/21
All demolition works are to ground floor level only and excludes removal of
Approved
E.ZX0M Primetals Technologies Limited
Iron & Steel Making
Blast Furnace
Visitors Centre Suitability Study
Technical Specification
The unauthorized use of this documentation or use
contrary to its intended purpose is not permitted
The content of this sheet is our copyright property.

6 Proposed Visitor Centre


© Primetals Technologies Limited

The focal point of any blast furnace complex is the casthouse floor where people can appreciate
the machinery and systems in place to remove the hot metal from the furnace and subsequently
and shall be prosecuted.

separate the iron and slag.


It is proposed that an 800m2 (GIFA) building is constructed in the vicinity of the west slag pits as
shown below so that visitors can view the overall blast furnace complex and receive historical
information on iron-making within Teesside.
Содержание настоящего листа является нашей интеллектуальной
настоящей
документацией или пользование таковой не по назначению не
пользование

допускается и преследуется по закону.


собственностью. Неразрешенное
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die
unbefugte bzw. bestimmungswidrige Verwendung dieser
Unterlage ist nicht gestattet und wird gerichtlich verfolgt.

From the visitors centre a safe route should be established to allow for people to enter the west
casthouse using the ramp on the north side of the slag pit.
Due to the inclined nature of the ramp this may not be suitable to lesser abled persons and an
elevator shall be considered to allow access to the casthouse from ground floor level.
A hardstanding shall require creating around the area of the west slag pits and shall incorporate
parking for buses etc.

PT No: Rev: Page:


E.ZX0M 00 20/21
File: RBF condition assessment R01.docx Printed: 2020-10-23 14:17
Der Inhalt dieses Blattes ist unser geistiges Eigentum. Die Содержание настоящего листа является нашей интеллектуальной © Primetals Technologies Limited
unbefugte bzw. bestimmungswidrige Verwendung dieser собственностью. Неразрешенное пользование настоящей
документацией или пользование таковой не по назначению не The content of this sheet is our copyright property.
Unterlage ist nicht gestattet und wird gerichtlich verfolgt. The unauthorized use of this documentation or use
допускается и преследуется по закону.
contrary to its intended purpose is not permitted
and shall be prosecuted.

PT No:
Exclusions

E.ZX0M
E.ZX0M

Insurances
Maintenance works
Electricity (200kwh)

File: RBF condition assessment R01.docx


Maintenance management
Technical Specification

Approximate Operating costs


Employment costs (6 employees)
Visitors Centre Suitability Study

Condition assessments and inspections

Total

Rev:
00
Approved

£75,000 / year

£212,000 / year
£285,000 / year
£185,000 / year
£225,000 / year

£982,000 / year

Page:
Primetals Technologies Limited

Blast Furnace
Iron & Steel Making

Printed: 2020-10-23 14:17


21/21
REDCAR BLAST FURNACE: DETAILED SUMMARY OF INDICATIVE COSTS
Indicative costs excluded from the Redcar Blast Furnace Visitor Centre
Sustainability Study (2020) – Provided by the South Tees Development
Corporation to the Tees Valley Combined Authority for presentation to the
Teesworks Heritage Taskforce

1. Asbestos removal or encapsulation


A report from DDM Demolition that estimates the cost of total asbestos removal
connected with a full demolition of the RBF complex at £6M. In terms of the
partial demolition proposed under a retained RBF scenario, I would assume the
following
• Asbestos removal (peripheral asset demolition): £1.0M
• Partial asbestos removal (retained RBF) for safe access and usage: £1.0M
• Encapsulation of asbestos where possible: £0.5M
Asbestos removal cost: £2.5M

2. Scrap recovery credits


DDM assessed the total scrap metal content of the RBF complex at 30,000
tonnes. I would assume around 25% would be connected with the demolition of
the peripheral assets, i.e., 7,500 tonnes.
Scrap metals recovery credits: £1.35M

3. Scrap processing
This is normally included in the demolition cost. But we can assume 7,500 tonnes
for processing in this instance. Typical rates, including transport, range from
£25.00-£35.00 per tonne, I’ve assumed £35.00 per tonne due the heavy duty
nature of the demolition and related metalwork.
Scrap metals processing cost: £0.26M

4. Recovery credits on copper cooling elements


It’s unclear what if any copper elements could be recovered from the RBF under
a retained scenario without incurring appreciable costs connected with their
recovery. The assessment on copper contained in the RBF was estimated by
STSC at around 750 tonnes. Assuming we consider that 100 tonnes is
recoverable under a non-demolition scenario, and with scrap copper typically
priced at £4,000/tonne, the position would likely be close to:
Recovery credits – copper: £0.4M
Cost of recovery: £0.1M
Net recovery credits: £0.3M

5. General site security


Fencing (1,000m): £0.25M

1
Cameras, cabling, etc: £0.05M
Security lighting: £0.05M
Alarm systems: £0.05M
Site security cost: £0.4M

6. Removal of foundations
This is assumed to be related to the removal of foundations connected with the
demolition of the peripheral assets. The area of such assets is around 20,000 sq.
m, assume 0.75m thick throughout giving £15,000 cu. m of concrete
Cost of foundation removal: £0.23M
Processing: £0.2M
Filling voids: £0.07M
Removal of foundations – cost: £0.5M

Net position: £2.01M cost

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