The Government has launched a consultation on its steel strategy.
It comes just days after Heathrow signed the UK Steel Charter at British Steel‘s Scunthorpe plant, as it announced major expansion plans that would involve use of UK steel. The proposed ‘Plan for Steel’ re-commits the Government to £2.5bn investment in the industry and identifies a number of challenges the industry faces it would look at easing.
These include protection from unfair trade abroad, and encouragement of high usage of UK-made steel in public sector projects. Trade union Unite has called it “a critical landmark” in reinvigorating the steel industry. However, there is currently the possibility of major tariffs being put on British steel by the US, and within weeks.
“The UK steel industry has a long-term future under this Government,” said Business Secretary Jonathan Reynolds. “We said that during the election, and we are delivering on it now.” The Plan for Steel proposes to look at ways to:
- Identify where there are opportunities to expand UK steelmaking to better support the wider UK economy
- Protect the steel sector from unfair trading practices abroad
- Improve scrap processing facilities so they can best support the steel-making of the future
- Encourage high usage of UK-made steel in public projects.
To make the UK competitive globally, the Plan for Steel would also examine the electricity costs for steel companies. The focus on scrap metal facilities comes as the industry looks to transition to electric arc furnaces (EAF).
This recycles scrap steel by melting it to produce high-quality steel and other metals. British Steel has effective planning permission for build an EAF on its Scunthorpe site, as a replacement for the blast furnaces. But the Plan for Steel also includes assessment of UK primary steelmaking capabilities – known as virgin steel.
UK Steel’s director-general Gareth Stace commented: “Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel. The Government’s commitment to our steel sector is both vital and welcome.” The consultation is open until March 10, and can be viewed here.
GMB national secretary Andy Prendergast said: “After years of dithering, today’s plan provides desperately needed funding for our once proud, now beleaguered steel industry. As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.”
Unite’s general secretary Sharon Graham called it “a critical landmark” for the industry. “It is the first time in decades that a government has made a positive commitment to invest in the UK steel industry. It is essential that all such investment is clearly linked to rock solid job guarantees.
She added: “Going forward the government must tackle excessive energy charges which make UK steel overly expensive. While, introducing watertight rules to ensure public sector always buy UK steel.”
(Image: AP)
Trump and Scunthorpe steel
Last week saw Heathrow’s commitment to the UK steel industry. Its expansion plans would require 400,000 tonnes of steel, enough to build the Empire State Building. Recent news from the US has been less positive for Scunthorpe steelworks.
President Donald Trump has announced plans for 25 per cent tariffs on aluminium and steel imports. These could come into effect from March 12. Business Secretary Jonathan Reynolds has stated the UK and US have a “mutual interest” in negotiating an exemption.
Brigg and Immingham’s MP Martin Vickers (Conservative) participated in an urgent debate on the matter earlier this month. “Many of my constituents who work at the Scunthorpe steelworks already face an uncertain future, and this will just increase their concerns,” he stated.
Trade policy minister Douglas Alexander said in reply that the March 12 intended tariff introduction date gave “a window of opportunity” to talk to companies and affected workforces, and the Trump administration.
Commenting after the debate, Mr Vickers said of the potential tariffs: “This is a worrying, though not surprising development and I hope that ministers will press the US administration hard and, hopefully, gain some concessions for the British steel industry.”
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Original artice: https://www.grimsbytelegraph.co.uk/all-about/scunthorpe
