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Consett Iron Company

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Consett Iron Company Ltd
Company typePrivate (1864–1951, 1955–1967), Nationalised (1951–1955, 1967–1980)
IndustryIron and steel manufacturing
PredecessorDerwent and Consett Iron Company
FoundedApril 4, 1864; 162 years ago (1864-04-04) in Consett, County Durham, UK
FounderJonathan Richardson (founder of predecessor), Jonathan Priestman II (managing director at incorporation)
Defunct1980 (1980)
FateClosure of steelworks; nationalisation and later integration into British Steel Corporation
SuccessorBritish Steel Corporation (from 1967)
Headquarters
Consett
,
United Kingdom
Area served
United Kingdom; British steel market
Key people
William Jenkins (General Manager 1869–1894), Jonathan Priestman II (Managing Director at incorporation), Henry Fenwick (Director), John Henderson (Director)
ProductsIron and steel products, coal, limestone, iron plates, steel cross-sections, iron castings, bricks
OwnerPrivate owners; National Coal Board (coal mines from 1947); British Steel Corporation (from 1967)
Number of employees
~12,000 during WWII; ~6,000 in 1961 steel plate mill (1940s; 1961)
ParentIron and Steel Corporation of Great Britain (1951–1955); British Steel Corporation (from 1967)

The Consett Iron Company Ltd operated as an industrial enterprise located in Consett, County Durham, UK. Its operations included ownership of coal mines, limestone quarries, and the manufacture of iron and steel products. Established on 4 April 1864 as the successor to the Derwent and Consett Iron Company, it traced its origins back to the earlier Derwent Iron Company, which was founded in 1840.

Following the nationalisation of British coal in 1947, the company's seven collieries and coke ovens were transferred to the National Coal Board. The Consett Iron Company itself was nationalised in 1951 under the Iron and Steel Corporation of Great Britain, experienced a brief period of privatisation, and was renationalised again in 1967. That same year, it became part of the British Steel Corporation, with its facility known as Consett Steel Works. The British Steel Consett Works ceased operations in 1980.

Early history

In 1840, a group of local entrepreneurs led by Jonathan Richardson founded the Derwent Iron Company with the aim of quarrying and smelting ironstone near Consett. Facing depletion of high-quality local ironstone reserves, the company extended its railway connections through the Stockton and Darlington Railway starting in 1851 to access ore from the Cleveland Ironstone Formation near Eston. This expansion included acquiring sections of the former Stanhope and Tyne Railway to secure additional ironstone supplies.

By 1857, financial difficulties had accumulated, with nearly £1 million owed to the collapsed Northumberland and Durham District Bank. An attempt to sell to a newly formed Derwent and Consett Iron Company was unsuccessful. Subsequently, on 4 April 1864, following these financial challenges, a new entity named Consett Iron Company Ltd was incorporated with a capital of £400,000 divided into 40,000 shares at £10 each. The company was led by managing director Jonathan Priestman II, with directors including Members of Parliament Henry Fenwick and John Henderson. At that time, the company operated 18 blast furnaces capable of producing 80,000 tons of pig iron and 50,000 tons of finished iron annually. It also owned extensive land holdings and workers’ housing.

Success under William Jenkins

From 1869 until 1894, William Jenkins served as general manager of the Consett Iron Company, steering it toward consistent profitability despite significant market volatility, including the industrial depression spanning from the late 1870s through the early 1890s. Rather than distributing dividends extensively, Jenkins focused on retaining capital within the company, thereby reducing dependence on borrowing and lowering financing costs. He also prioritized employee welfare by establishing schools, churches, recreational parks, a hospital, and other community amenities. Jenkins passed away in 1895. During his tenure, the company’s share of the British steel market reached a peak of 7.1% in 1894 but declined to 4.2% by 1910. Business historians H. W. Richardson and J. M. Bass commended Jenkins for his strategic leadership and his effective choice of senior management.

Fluctuating profitability at Consett Iron Company
Year Net Profit (£'000) Return on Capital (%)
1865 39 12
1870 102 24.5
1875 215 33.7
1880 104 15.6
1885 60 8.6
1890 366 38.6
1895 115 8.6
1900 673 38.7
1905 245 13.6
1910 221 12.4

Around the year 1876, as global railways transitioned from malleable iron rails to steel rails, Consett's production volume decreased by approximately one-third. In response, the company shifted focus toward manufacturing iron plates to meet growing demand from shipbuilding industries. Beginning in 1882, Consett commenced steel plate production using the Siemens-Martin open hearth process with initial furnaces operational by 1883. By 1887, it had diversified into producing steel cross-sections—such as angles (L-sections), rolled joists, and girders—intended for ship construction through its Angle Mills facility situated on a sixteen-acre site capable of producing up to 1,500 tons per week.

By 1889, this Angle Mills plant had become recognized as the largest steel plate factory worldwide. Beyond steelmaking activities, by 1892 the company operated a foundry near Crookhall producing up to150 tons weekly of iron castings as well as a brickworks manufacturing approximately12,000 bricks per week. The estate encompassed about2,700 workers’ cottages alongside a16-bed infirmary dedicated to treating injured employees. Approximately6,000 workers earned an average monthly wage of £5.33. Continuous modernization efforts included acquiring advanced equipment such as a powerful Roots blower air pump in1893 to enhance production efficiency.

Twentieth century

Following William Jenkins, George Ainsworth took over as general manager from 1851 until his passing in 1894. Initially, the company maintained profitability; however, its machinery and technology grew outdated due to spatial constraints at Consett and the failure to transition to electrical power, unlike its competitors.

By 1924, the firm possessed a share capital of £3,500,000 (equivalent to £185 million in 2013) and had issued debenture stock amounting to £1,500,000 (£74 million in 2013 terms). In 1938, it played a financial role in establishing the New Jarrow Steel Company following the collapse of Palmers Shipbuilding and Iron Company, an event that had sparked the 1936 Jarrow March. Throughout World War II, Consett Iron Company sustained production using lower-grade iron ore and employed approximately 12,000 workers.

The company's coal mines were nationalised in 1947 under the National Coal Board. Subsequently, in 1951, Clement Attlee's Labour government brought the remainder of the company into public ownership within the short-lived Iron and Steel Corporation of Great Britain, along with all British steelworks. The Consett steelworks returned to private ownership in 1955, followed by the opening of a new steel plate mill in 1961 dedicated to shipbuilding supply, employing around 6,000 staff.

In 1967, under Harold Wilson's administration, Consett Steel Works was renationalised into the British Steel Corporation, during a period of ongoing decline in iron, coal, and shipbuilding sectors. At that time, British Steel was operating below its capacity with outdated technology, escalating raw material expenses, and insufficient investment for modernization. Government strategies focused on preserving employment levels further added operational pressures.

Closure

In 1980, Consett Steel Works ceased operations amid significant controversy and widespread worker protests, resulting in job losses estimated between 3,000 and 4,000 and an unemployment rate soaring to 35%, twice the national average. This closure brought an end to decades of steel manufacturing that had been central to the local economy.

The characteristic red iron oxide dust and steam emissions from the steelworks disappeared, signifying a profound environmental transformation. Some former employees took part in dismantling the facility.

At present, nearly all physical remnants of the steelworks have been cleared away, with only the Terra Novalis sculptures—constructed from materials sourced on-site—remaining as industrial heritage symbols. Over the subsequent decade, Consett’s economy diversified progressively, restoring job opportunities beyond its traditional steel industry base.

Sources

Further reading

  • Garside, W. R. "Consett Iron, 1840–1980: An Industrial Location Study"; Business History; 1 October 1991.
  • O'Donnell, Elizabeth (2003). Deviating from the Path of Safety: The Rise and Fall of a Nineteenth Century Quaker Meeting. Quaker Studies. 8:1, pp. 68-88 [Includes summary of the Derwent Iron Company's history].

General

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