Steel Industry a ‘Whisker Away From Collapse’ Due to Government Inaction

The money has not been confirmed by the Treasury, but it is understood the grant is conditional on the firm’s owners, Jingye, a Chinese company, investing in greener technology.

SEATTLE (Scrap Monster): Representatives of UK steel industry workers have warned that “crippling energy costs, carbon taxes, lost markets, lower demand, and open market access for imported steel” has left the industry on the brink of collapse.

Steve Turner, Unite’s assistant general secretary, asked Business Secretary Grant Shapps for an urgent meeting on behalf of his union, as well as Community and GMB, to address the steel industry’s current and future support from the Government.

Mr Turner warned him the challenges faced by manufacturers, including British Steel, Tata Steel, and Liberty Steel, were caused by “direct actions by your government that have… significantly undermined UK plant competitiveness in global markets”.

He added a “lack of meaningful action” in the areas of UK procurement policy, green energy, energy pricing support and support for investment in new technologies has left the steel industry “at breaking point”.

“We are, in the words of many, ‘a whisker away from collapse’,” he said.

Sky News reported on Friday that Chancellor Jeremy Hunt is preparing to grant a £300m funding package for British Steel, in instalments over the next few years, in a bid to help protect thousands of jobs.

The money has not been confirmed by the Treasury, but it is understood the grant is conditional on the firm’s owners, Jingye, a Chinese company, investing in greener technology.

The funding will be reportedly contingent on attempts to get British Steel to decarbonise, by helping it to replace the company’s blast furnaces in Scunthorpe, North Lincolnshire, with electric alternatives.

British Steel was bought out of insolvency by Jingye, becoming its third owner in four years, but has recently said it will need taxpayer funding to keep the doors open.

In response to the letter, a spokesperson for the Department for Business, Energy and Industrial Strategy said the government recognised “the vital role that steel plays within the UK economy, supporting local jobs and economic growth”, and that it is “committed to securing a sustainable and competitive future for the UK steel sector”.

Courtesy: www.inews.co.uk

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