Several reasons, ranging from high energy costs to the influx of cheap Chinese steel, and the strength of sterling which has supported imports, have led to a significant number of factory closures and thousands of job losses
in the UK in 2015.
This included 1,700 jobs at Sahaviriya Steel Industries’ (SSI) Redcar
steelworks in Northeast England, and 1,170 jobs at two Tata Steel plate production sites
Late aid package
Slowly, steps are being taken to support the UK steel industry. Yet it remains to be seen how effective they will be.
The UK government announced on December 17 that it secured European Commission (EC) approval to grant state compensation
for the cost of renewables to energy-intensive industries (EIIs), including the steel industry.
“The levy costs companies £4.5 million ($6.71 million) a month so it’s important to have clarity because companies have to factor it into their costs when...