UK should give preference to local steel in public procurement – UK Steel

The UK government, as the country’s largest steel buyer, has a unique opportunity to support its steel sector. This is stated in a new report by the UK Steel industry association.

However, according to the study, the latest data shows that a third of the steel purchased by the government is imported, costing British taxpayers £1.5 billion annually.

Over the next decade, the government’s steel needs will exceed £4.3 billion, even without taking into account major initiatives such as carbon capture and storage, hydrogen infrastructure, nuclear power, and offshore wind power.

In particular, LumenEE experts commissioned by UK Steel have estimated that up to 25 million tons of steel will be needed over the next 25 years for offshore wind energy investments around the UK coast, and this segment will be worth approximately £21 billion (almost $26.5 billion) in procurement. This study in just one sector shows the huge opportunities for the UK industry in the wider metals supply chain, provided that there is some support.

UK Steel believes that the UK government should give preference to domestic steel in infrastructure projects.

The association makes a number of recommendations to increase domestic procurement of steel products. In particular, they include the use of public procurement contracts and certain requirements for the use of local steel.

“The UK steel industry is ready to work with the government to develop a strong steel strategy that prioritizes local production. Strategic procurement can turn taxpayers’ investment into a win for the economy, preserving well-paid jobs and revitalizing our industry,” said Gareth Stace, CEO of UK Steel.

As GMK Center reported earlier, the UK government is launching a new Industrial Strategy and Sovereign Wealth Fund to provide stability for investors and support the manufacturing base, including the steel industry.