UK intents to support steel industry – Secretary of State

UK Secretary of State for Business Jonathan Reynolds reaffirmed the government’s commitment to supporting the steel industry during the parliamentary summit “Shaping a Strategy for Steel”. This is stated in a press release from Tata Steel UK.

The event, organized by UK Steel, brought together government officials, industry leaders and trade unions to discuss the future of the steel sector.

In his speech, Reynolds emphasized the importance of steel for the modern economy, noting that the country lags far behind other G7 countries in terms of efficiency in this area. He emphasized that the government is committed to changing the situation by investing in new technologies and low-carbon production processes.

Reynolds outlined concrete steps, including the creation of a £2.5 billion Green Steel Fund to help modernize the industry, including the transition to electric arc furnaces, which will reduce emissions and preserve strategic capabilities.

“We are investing in the future, not covering past losses,” he said, emphasizing the long-term perspective of the industry.

Other measures include addressing the problem of high energy costs and fighting global competition. The government will support the cross-border carbon adjustment mechanism (CBAM) and respond to unfair competition in the international market. Reynolds called on all stakeholders to work together to make this a turning point for the UK steel industry.

Earlier, the UK Steel industry association called on the UK government, as the largest steel buyer in the country, to give preference to local steel in public procurement. A third of the steel purchased by the government is imported, which costs British taxpayers £1.5 billion annually.