British defense strategy emphasizes priority for domestic steel

The publication of the British Defense Industry Strategy (DIS) signaled a decisive change in public procurement policy aimed at recognizing the importance of metallurgy for national security. This assessment of the document was given by the industry association UK Steel.

The association noted that the new DIS states that steel is a priority for industrial security in supply chains, which means a departure from the long-established approach of global competition by default for the Ministry of Defense. Instead, there is a clear emphasis on developing industrial capacity within the country.

The key elements of the new strategy are as follows:

• supporting British companies through long-term contracts, procurement reforms, and moving away from competition by default;
• building a sustainable industrial base by securing supply chains, manufacturing capacity, and stockpiles, while encouraging foreign investment in key sectors that promise to strengthen defense capabilities;
• improving procurement by simplifying processes, ensuring greater predictability and increasing transparency, with a greater focus on early engagement with industry in the marketplace.

The strategy’s ambitions are backed up by the revised Steel Procurement Policy (PPN) published in June. The PPN is part of a broader government package of measures aimed at enhancing national security.

“For the first time, thanks to the introduction of DIS and PPN, the Ministry of Defense will have the authority to give priority to UK-based suppliers, not only on the basis of cost, but also on the broader value they provide in terms of national security, supply chain resilience, and regional economic growth,” UK Steel said.

It should be recalled that this summer, German defense manufacturers, including Rheinmetall AG, called on national steel companies to increase the production of military-grade steel. Demand for armor steel is growing amid the war in Ukraine and a possible reduction in US military support for Europe.