Latest news with #PlanforSteel
The Independent
28-03-2025
- Business
- The Independent
Government urged to nationalise British Steel if deal cannot be reached
The Government is being urged to nationalise British Steel if a deal cannot be reached to secure the business. Chinese owners Jingye announced on Thursday it was launching a consultation on the proposed closure of blast furnaces at its Scunthorpe plant, raising fears of thousands of job losses. The company has reportedly rejected a £500 million Government offer to help its transition to a greener form of steel production with a new electric arc furnace. Closure would mean the end of steelmaking in Scunthorpe after 160 years of production. Industry body UK Steel warned that the ending of steel production in Scunthorpe would mean the UK loses vital steelmaking capabilities in rail, heavy sections, and light sections, critical to transport, infrastructure, and construction – leaving customers dependent on international supplies. The Community union's assistant general secretary Alasdair McDiarmid said: 'British Steel is a business of huge strategic importance, not just to the local economy and the wider steel sector, but to the country as a whole. 'There is now a serious risk that the UK will become the only G7 country unable to produce its own virgin steel. This would be a totally unacceptable situation at any time, let alone in the current era of global insecurity and volatility. 'If a deal can't be reached with Jingye, then the government must move to nationalise the business. This government cannot afford to renege on the commitments it has made to steelworkers, and it is unthinkable that they would allow Britain's primary steelmaking capacity to die on their watch.' UK Steel director general Gareth Stace said: 'The proposal to close iron and steelmaking at Scunthorpe marks a heartbreaking and pivotal moment for our sector. It is a shocking blow to the 3,400 workers, our sector and to the whole community in Scunthorpe. This gut punch to UK steelmaking will have a profound impact, felt throughout the British economy. 'All options should be on the table, and we need a secure future for our steel industry. The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armour of national security. 'This devastating decision will cause untold disruption and damage to our supply chains, threatening jobs, businesses and the nation's economic strengths. The steel industry is officially in a crisis,' Business and Trade Secretary Jonathan Reynolds said: 'I know this will be a deeply worrying time for staff and, while this is British Steel's decision, we will continue working tirelessly to reach an agreement with the company's owners to secure its future and protect taxpayers' money. 'We've been clear there's a bright future for steelmaking in the UK. We've committed up to £2.5 billion to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.'
Yahoo
16-02-2025
- Business
- Yahoo
Plans to protect UK steel industry amid threat of tariffs
The government has announced plans to protect the UK's steel industry in a bid to secure its long-term future, as it faces the impact of potential tariffs. The Plan for Steel will include measures that seek to bring down the cost of production and encourage the use of domestic steel in infrastructure projects. It also hopes to protect UK steel from "unfair trading practices abroad", including being undercut by cheaper suppliers. The announcement comes days after US President Donald Trump said he would impose a 25% tariff on all steel imports from 12 March - something the UK sector fears would cost it millions in trade. Business Secretary Jonathan Reynolds launched a consultation on the government's Plan for Steel to look at long-term issues facing the industry, after ministers committed to providing up to £2.5bn in support. While the consultation does not directly address the threat tariffs may pose to the sector, Reynolds said the financial support for the steel industry was "to protect our industrial heartlands, maintain jobs, and drive growth". Shadow business secretary Andrew Griffith said the "uncertainty" the steel industry faced due to US tariffs was something the government "has been entirely silent on when instead they should be talking to the US, our closest trading partner". The Plan for Steel will address issues that have been "holding the industry back for too long", the Department for Business and Trade (DBT) said. These include: Identifying opportunities to expand steel production Encouraging the use of UK-made steel in public infrastructure projects, such as the proposed Heathrow Airport expansion Improving scrap processing facilities Investing in electric arc furnaces, which are less energy-intensive than blast furnaces and use less carbon-emitting coke The consultation will also examine electricity costs for steel companies "to make the UK competitive globally", and how to protect the sector from unfair trading practices abroad, such as cheap imports flooding the market, the DBT added. The announcement does not directly address the potential impact of Trump's tariff plans at this stage, nor does it include a firm commitment to reduce energy bills. The government has previously said it would not retaliate immediately to the tariffs announced by Trump, despite many in the steel industry calling on Britain to join the EU and Canada in threatening reciprocal measures. Reynolds told the BBC earlier this week the UK had a strong case to avoid the import taxes - which Trump has said will be enforced "without exceptions or exemptions" - as British exports to the US were small in comparison to other nations and steel was used in areas such as defence. Trump says metal tariffs to start in March UK signals it will seek US steel tariff exemption Three US goods that could rise in price due to metal tariffs Is Trump right when he says the US faces unfair trade? UK Steel, which represents the industry, has said the tariffs would be a "devastating blow" that would damage the sector's £400m-a-year contribution to UK-US trade. The UK is not a big supplier of steel to the US, with the country accounting for about 10% of British steel exports. But there are concerns within the industry the tariffs might not just hinder exports to the US, but also lead to excess steel being "dumped" in the UK. This could occur if other countries no longer exporting to the US decide to offload steel at cheaper prices, which could potentially lead to UK steelmaking businesses being undercut. The government hopes its plan will secure jobs in the UK's steel industry and secure its future. Financial support could benefit Scotland and areas such as Scunthorpe, Lincolnshire, Rotherham in South Yorkshire and Redcar in North Yorkshire "which have a strong history of steel production", the DBT said. Help will be available through the National Wealth Fund, which partners the government with the private sector and local authorities to finance infrastructure and other projects. The DBT said it was "wasting no time" supporting UK steel, pointing to the government's backing of expanding Heathrow Airport, which it said would require 400,000 tonnes of steel. The UK steel industry has faced heavy job losses in recent years. Tata Steel said it was replacing traditional blast furnaces with an electric arc furnace at its largest UK site in Port Talbot, Wales. Traditional steelmaking at the site ceased in September, resulting in 2,800 job cuts. British Steel announced in 2023 it would close blast furnaces in Scunthorpe, and unveiled plans to roll out an electric arc furnace, which requires fewer workers to keep it going, with 3,000 jobs expected to be axed. The GMB union said the government's plan to support the "beleaguered" steel industry provided "desperately needed" funding after "years of dithering". "As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security," the union's national secretary Andy Prendergast added. Gareth Stace, director-general of UK Steel, said the government's commitment to the industry was "both vital and welcome". Information gathered in the consultation will be used to help form a "steel strategy", to be launched in the spring. Stace added a robust strategy "has the power to reverse the sector's decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions". Griffiths said he looked forward to seeing a detailed plan, but added "a clear part must be steps to reduce the cost of energy which is placing an intolerable strain on UK steel".
Yahoo
16-02-2025
- Business
- Yahoo
Plans to protect UK steel industry amid threat of tariffs
The government has announced plans to protect the UK's steel industry in a bid to secure its long-term future, as it faces the impact of potential tariffs. The Plan for Steel will include measures that seek to bring down the cost of production and encourage the use of domestic steel in infrastructure projects. It also hopes to protect UK steel from "unfair trading practices abroad", including being undercut by cheaper suppliers. The announcement comes days after US President Donald Trump said he would impose a 25% tariff on all steel imports from 12 March - something the UK sector fears would cost it millions in trade. Business Secretary Jonathan Reynolds launched a consultation on the government's Plan for Steel to look at long-term issues facing the industry, after ministers committed to providing up to £2.5bn in support. While the consultation does not directly address the threat tariffs may pose to the sector, Reynolds said the financial support for the steel industry was "to protect our industrial heartlands, maintain jobs, and drive growth". Shadow business secretary Andrew Griffith said the "uncertainty" the steel industry faced due to US tariffs was something the government "has been entirely silent on when instead they should be talking to the US, our closest trading partner". The Plan for Steel will address issues that have been "holding the industry back for too long", the Department for Business and Trade (DBT) said. These include: Identifying opportunities to expand steel production Encouraging the use of UK-made steel in public infrastructure projects, such as the proposed Heathrow Airport expansion Improving scrap processing facilities Investing in electric arc furnaces, which are less energy-intensive than blast furnaces and use less carbon-emitting coke The consultation will also examine electricity costs for steel companies "to make the UK competitive globally", and how to protect the sector from unfair trading practices abroad, such as cheap imports flooding the market, the DBT added. The announcement does not directly address the potential impact of Trump's tariff plans at this stage, nor does it include a firm commitment to reduce energy bills. The government has previously said it would not retaliate immediately to the tariffs announced by Trump, despite many in the steel industry calling on Britain to join the EU and Canada in threatening reciprocal measures. Reynolds told the BBC earlier this week the UK had a strong case to avoid the import taxes - which Trump has said will be enforced "without exceptions or exemptions" - as British exports to the US were small in comparison to other nations and steel was used in areas such as defence. Trump says metal tariffs to start in March UK signals it will seek US steel tariff exemption Three US goods that could rise in price due to metal tariffs Is Trump right when he says the US faces unfair trade? UK Steel, which represents the industry, has said the tariffs would be a "devastating blow" that would damage the sector's £400m-a-year contribution to UK-US trade. The UK is not a big supplier of steel to the US, with the country accounting for about 10% of British steel exports. But there are concerns within the industry the tariffs might not just hinder exports to the US, but also lead to excess steel being "dumped" in the UK. This could occur if other countries no longer exporting to the US decide to offload steel at cheaper prices, which could potentially lead to UK steelmaking businesses being undercut. The government hopes its plan will secure jobs in the UK's steel industry and secure its future. Financial support could benefit Scotland and areas such as Scunthorpe, Lincolnshire, Rotherham in South Yorkshire and Redcar in North Yorkshire "which have a strong history of steel production", the DBT said. Help will be available through the National Wealth Fund, which partners the government with the private sector and local authorities to finance infrastructure and other projects. The DBT said it was "wasting no time" supporting UK steel, pointing to the government's backing of expanding Heathrow Airport, which it said would require 400,000 tonnes of steel. The UK steel industry has faced heavy job losses in recent years. Tata Steel said it was replacing traditional blast furnaces with an electric arc furnace at its largest UK site in Port Talbot, Wales. Traditional steelmaking at the site ceased in September, resulting in 2,800 job cuts. British Steel announced in 2023 it would close blast furnaces in Scunthorpe, and unveiled plans to roll out an electric arc furnace, which requires fewer workers to keep it going, with 3,000 jobs expected to be axed. The GMB union said the government's plan to support the "beleaguered" steel industry provided "desperately needed" funding after "years of dithering". "As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security," the union's national secretary Andy Prendergast added. Gareth Stace, director-general of UK Steel, said the government's commitment to the industry was "both vital and welcome". Information gathered in the consultation will be used to help form a "steel strategy", to be launched in the spring. Stace added a robust strategy "has the power to reverse the sector's decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions". Griffiths said he looked forward to seeing a detailed plan, but added "a clear part must be steps to reduce the cost of energy which is placing an intolerable strain on UK steel".
Yahoo
15-02-2025
- Business
- Yahoo
UK to publish steel industry green paper ahead of schedule due to U.S. tariffs, Observer reports
LONDON (Reuters) - Britain will publish a green paper for the country's steel industry on Sunday weeks ahead of schedule due to President Donald Trump's announcement of fresh tariffs on all steel imports into the U.S., the Observer newspaper reported on Saturday. "The context, both at home and abroad, is behind the sense of urgency that we are demonstrating by bringing forward publication of the strategy," business minister Jonathan Reynolds told the Observer. The business department did not immediately reply to a request for comment. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. The Labour government previously said it wanted to invest 2.5 billion pounds ($3.15 billion) in the steel industry and it would publish a strategy on its plans to boost the sector in the spring. Reynolds said on Thursday Britain would seek to persuade the U.S. government that its steel and aluminium products should avoid tariffs due to the sensitive role they play in the U.S. defence sector and its manufacturing supply chains. The Observer said Reynolds would publish a green paper entitled 'Plan for Steel' on Sunday. It will look into issues facing the industry, such as high energy costs and international turmoil. Trump said on Sunday he would introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties. He said earlier in February, when talking about tariffs in general, that he thought something could be "worked out" with Britain. Britain and the United States trade hundreds of billions of dollars' worth of goods and services annually. Industry body UK Steel warned the tariffs could be "devastating" as the U.S. is the second largest export market for UK steel, worth over 400 million pounds a year. ($1 = 0.7946 pounds)
Reuters
15-02-2025
- Business
- Reuters
UK to publish steel industry green paper ahead of schedule due to U.S. tariffs, Observer reports
LONDON, Feb 15 (Reuters) - Britain will publish a green paper for the country's steel industry on Sunday weeks ahead of schedule due to President Donald Trump's announcement of fresh tariffs on all steel imports into the U.S., the Observer newspaper reported on Saturday. "The context, both at home and abroad, is behind the sense of urgency that we are demonstrating by bringing forward publication of the strategy," business minister Jonathan Reynolds told, opens new tab the Observer. The business department did not immediately reply to a request for comment. The Labour government previously said it wanted to invest 2.5 billion pounds ($3.15 billion) in the steel industry and it would publish a strategy on its plans to boost the sector in the spring. Reynolds said on Thursday Britain would seek to persuade the U.S. government that its steel and aluminium products should avoid tariffs due to the sensitive role they play in the U.S. defence sector and its manufacturing supply chains. The Observer said Reynolds would publish a green paper entitled 'Plan for Steel' on Sunday. It will look into issues facing the industry, such as high energy costs and international turmoil. Trump said on Sunday he would introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties. He said earlier in February, when talking about tariffs in general, that he thought something could be "worked out" with Britain. Britain and the United States trade hundreds of billions of dollars' worth of goods and services annually. Industry body UK Steel warned the tariffs could be "devastating" as the U.S. is the second largest export market for UK steel, worth over 400 million pounds a year. ($1 = 0.7946 pounds)
