The UK government has announced a raft of measures which are designed to support the UK’s steel industry, which has been affected by the higher cost of materials, as well as the challenge of cheaper imports from overseas.
What are the Measures?
As part of this agenda, the UK government has focused on a few different measures, which should combine to improve the state of play for UK steel manufacturing.
Largely, these centre around cutting import quotas, as well as imposing new higher tariffs of around 50% on excess imported steel.
In addition, the government is providing almost £2.5 billion in funding to support steel production plants across the UK.
What will this achieve?
It is hoped that these measures will increase the use of British made steel. If demand for British steel is greater – and the government is aiming for 50% here – this should mean that jobs in domestic steel production are well protected. It also has a knock-on effect on security and infrastructure – indeed, British steel has long been an important aspect of the country’s economy.
This will have a positive knock-on effect on further manufacturing industries and processes: for example, demand for electric tapping machines https://www.cotswold-machinery-sales.co.uk/roscamat-tapping-machines/electric-tapping-machines/roscamat-tiger-electric-tapping-machine/, a key aspect of manufacturing steel once it has been produced.
Green Initiatives
On top of this, it is hoped that the funding announced by the UK government will allow steelmakers to explore and implement some greener production techniques, reducing the carbon footprint associated with steel production.