The UK steel industry is still vulnerable, despite the post-crisis recovery

London – Britain’s steel industry is vulnerable, despite the recovery from the crisis of 2015. With many challenges that have led to thousands of job cuts still unresolved. And risks related to Brexit, said the executive director of Tata Steel UK on Tuesday (February 20, 2018).

„Currently, our nose is above water, but our lips are below. Any additional burden can drag us down,” said Bimlendra Jha, speaking at a conference organized in London by the EEF.

The British steel industry is still vulnerable

The steel industry in Great Britain is recovering from a crisis that led to the loss of approximately 7,000 jobs in the steel sector. Meaning approximately a quarter of the workforce, between September 2015 and March 2017.

Tata Steel Ltd (the parent business of Tata Steel UK) this month reported a fivefold increase in third quarter profit. Driven by the strong increase in volume in India and the increase in steel prices worldwide.

But the British steel industry remains vulnerable. And electricity costs are approximately 50% higher than neighboring EU countries. The same problems that affected the industry during the crisis.

To protect vulnerable industries from the effects of Britain’s departure from the European Union, the government launched an industrial strategy in November. But he has not yet finalized the details of the agreement for the steel industry.

Exiting the EU in 2019 could destabilize the steel industry. Especially if the commercial protection measures that will replace those of the EU prove to be less effective. In stopping dumping or subsidizing steel in Great Britain.

Dumping in the steel sector, especially from China, was a major cause of the crisis in the sector in 2015.

„I think we will lose out post-Brexit,” UK Steel chief Gareth Stace said.

Article source: http://www.euronews.com/2018/02/20/uk-steel-industry-vulnerable-despite-post-crisis-recovery-tata-steel