Unions: Lack of Support Threatens U.K Steel Industry
09/16/2015 - Labor unions have called on the British government to do more to support the country's steel industry following reports that SSI UK's Redcar works, along with roughly 3,000 jobs, are in jeopardy.
"While we appreciate the incredibly difficult market conditions faced by all U.K. steel producers, we believe a lack of support from the U.K. government in vital areas such as energy, environmental and business taxes and procurement threaten the very future of the U.K. steel industry,” a spokesman for the Community trade union told Reuters.
The news service said that producing steel profitably in Britain has become increasingly difficult due to cheap imports and a strong currency, plus relatively high energy costs and "green" taxes imposed on heavy industry. Those taxes are some of the highest in the world, Reuters said.
The British government said it has been working closely with the steel sector.
"We have provided steelmakers with millions of pounds in compensation for energy costs and recently voted to extend anti-dumping measures on certain Chinese steel products," the U.K. Department for Business, Innovation and Skills said.
SSI acquired the mothballed Redcar works from Tata Steel in 2011 and relit its blast furnace a year later. The mill, however, has struggled to achieve profitability ever since. SSI reportedly owes GBP80 million in loans on the mill. Loan payments were due in June, and the company is seeking an extension on the deadline to pay.
The Northern Echo newspaper said an emergency debate has been scheduled for 17 September in the House of Commons on the country's steel crisis.
The debate is to be led by Member of Parliament Anna Turley, who on 15 September held crisis talks with steel minister Anna Soubry, the newspaper said.
“The crisis in U.K. Steel is becoming serious and the government must act now to save steelmaking on Teesside,” Turley, a Labour party member, told the newspaper.
The news service said that producing steel profitably in Britain has become increasingly difficult due to cheap imports and a strong currency, plus relatively high energy costs and "green" taxes imposed on heavy industry. Those taxes are some of the highest in the world, Reuters said.
The British government said it has been working closely with the steel sector.
"We have provided steelmakers with millions of pounds in compensation for energy costs and recently voted to extend anti-dumping measures on certain Chinese steel products," the U.K. Department for Business, Innovation and Skills said.
SSI acquired the mothballed Redcar works from Tata Steel in 2011 and relit its blast furnace a year later. The mill, however, has struggled to achieve profitability ever since. SSI reportedly owes GBP80 million in loans on the mill. Loan payments were due in June, and the company is seeking an extension on the deadline to pay.
The Northern Echo newspaper said an emergency debate has been scheduled for 17 September in the House of Commons on the country's steel crisis.
The debate is to be led by Member of Parliament Anna Turley, who on 15 September held crisis talks with steel minister Anna Soubry, the newspaper said.
“The crisis in U.K. Steel is becoming serious and the government must act now to save steelmaking on Teesside,” Turley, a Labour party member, told the newspaper.
