Investment needed for UK steel

Reports from trade unions have emphasised the importance of supporting the UK steel industry which continues to struggle with increasing costs and lost markets.

With a variety of metals used in signage projects throughout the UK, as well as in associated industries like events and construction, the resilience of the steel industry is important to many that rely on the material.

Recently manufacturers like British Steel, Tata Steel, and Liberty Steel have faced difficulties such as closures and redundancies due to a lack of investment in the industry.

In a report by the BBC, a letter from Steve Turner, assistant general secretary of Unite, accuses the government of leading the industry to breaking point.

Turner’s comments come from a letter written to Business Secretary Grant Shapps on behalf of trade unions, Unite, Community, and GMB. The letter reads: "With little meaningful action on the part of government in areas of UK procurement policy, energy pricing support, green energy generation or support for investment in new plant and technologies, the industry is at breaking point."

Turner pin-points energy costs, carbon taxes, lost markets, lower demand, and open market access for imported steel, as some of the reasons steel production is suffering.

The government has insisted the industry is a priority at this moment, and plans are formulating which would see British Steel and Tata Steel UK receive around £300m of grants to help switch to greener energy options.

However, Tata Steel predicts that switching to “green steel” could cost the company and its investors up to £3bn, which may mean the grants are not enough to cover the huge costs involved.

With more foreign competition and spiralling costs, the UK steel industry still faces many struggles that could impact end-users in the same way other material costs have over the past year.

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