The world's second-largest steel company says development proposed for Chatham Docks would have “seismic adverse consequences” for the UK and is threatening to pull millions in investment.

Planning officers at Medway Council have recommended the plans - which would see the working docks and warehouses turned into a business and enterprise campus called Basin 3.

But writing to Michael Gove, an executive from ArcelorMittal argued plans to repurpose warehouses the firm currently uses for transportation logistics have not been properly scrutinised.

In the letter reported by Sky News, Matthew Brooks - who manages ArcelorMittal's construction solutions - urged the levelling-up secretary to put the application on hold.

If the proposal were to go ahead, he warned, the company would be ”left with no alternative but to leave Chatham Docks and, more than likely, cease operations in Britain, given the lack of suitable alternative sites".

"This, too, would likely be the case for the majority of businesses at the docks,” said Mr Brooks.

"This would have a significant impact on Britain's manufacturing and construction industries, delay countless critical national infrastructure projects.”

Mr Brooks says approval of the bid would cause the company to scrap plans to invest £20m and create new 2,000 jobs.

"None of this can be realised while there is uncertainty about the future of our lease on Chatham Docks,” he added.

The proposal to transform the docks on the Medway waterfront have been submitted by Peel Waters, of the Peel Group - an infrastructure and property investment firm.

If approved by local councillors, the plans will see the demolition of the existing warehouses and the construction of a set of 19 business units of various sizes, as well as a promenade and walking and cycle routes with green spaces.

The Peel Group says the development will create a "sustainable, versatile, and scalable" waterfront space which actively promotes job creation in creative, manufacturing and technology, life sciences, and IT and digital sectors.

In a statement, announcing the application submission, Peel executive director James Whittaker said: “We are confident that Basin3 will attract high-value jobs in target growth sectors including creative industries and advanced manufacturing, which is predicted to triple current job numbers on the site.

“The site we are promoting is currently brownfield land which presents a fantastic opportunity for sustainable regeneration, investment and development.

“Positioning this high-quality employment space adjacent to the cluster of universities and The Waterfront UTC, amplifies the potential to attract inward investment and encourages businesses to consider Medway as a key location for their growth whilst retaining local talent.”

Criticising the planning application, Mr Brooks argues it has “proceeded with little scrutiny and a lack of public awareness”, but it has attracted hundreds of letters from residents.

Writing to object to the scheme, Gary Rosewell expressed concern at the number of local jobs that could be lost.

“Chatham Docks currently employs over 800 people. Many are local to Medway or local to the area.

“There are many jobs and businesses which rely on the Docks and its tenants in the supply chain.

“All of these jobs will be lost if Chatham Docks was to close and Peel were granted this planning application.”

Find out about planning applications that affect you by visiting the Public Notice Portal.

The project has also faced opposition from the campaign group, Save Chatham Docks whihc has been endorsed by Medway Council leader Vince Maple (Lab) and Rochester and Strood MP Kelly Tolhurst (Con).