UK Steel Industry To Enjoy £3.8bn Boost
15th December 2017.
Britain’s steel industry could boost its revenues by £3.8 billion a year by 2030 according to a Government report.
Comprising part of the Government’s Industrial Strategy, the report acknowledges the historically low production rate for Steel within the UK; but insists this is about to change.
Back in 2015 national demand for steel was 9.4 million tonnes, of which less than half came from UK producers.
UK demand is set to rise to 11 million tonnes a year by 2030 according to a separate study. By boosting the amount of British-made steel used here, annual sales of UK steel could rise to £5.4 billion.
The biggest opportunity to boost sales is through construction, such as through infrastructure projects. An estimated 3 million tonnes of steel will be needed by 2021 for flagship projects such as the Hinkley Point nuclear power station and the HS2 rail link.
While increasing demand is vital to boosting the industry, the report fears that Britain may not have the capacity or capability to meet demand. It offers solutions such as reviving mothballed plants, and investing in new technologies and R&D so the latest types of steel can be produced.
In a bid to encourage competition with other economies, the Government has set out £600 billion worth of planned work ranging from roads and rail to defence and nuclear.
Industry distributor, UK Steel, is optimistic about the future of the industry, seeing it moving forward towards a more “positive, sustainable future”.
A fortnight ago G20 nations agreed a deal to tackle massive over-capacity in the global steel industry that was the root cause of the crisis in the UK sector two years ago. The ensuing accord is intended to stop unfair subsidies that skew the steel market and is the first concrete step in addressing massive steel production over-capacity and create a level playing field.
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