Over the past 16 years, the steel output by the country has dipped significantly by nearly 50%.
SEATTLE (Scrap Monster): Jeff Kabel, Chief Transformation Officer at Liberty Steel and Chairman Emeritus of the International Steel Trade Association (ISTA), noted that the crisis-hit UK steel industry requires urgent restructuring for its survival. Furthermore, he believes that opportunities still exist for a possible rebound.
According to him, the UK steel industry has been hit badly by several factors including impacts of Covid-19 pandemic, supply chain constraints and rising inflation, in addition to its inherent problems, including high energy costs, which have not been addressed for years now. Incidentally, the escalated energy costs makes UK steel dearer by at least 40-60%, when compared with competitors in other countries within Europe.
The operating and trading environment in the country has been less competitive when compared with those in Europe, Turkey, US, India, and China. Over the past 16 years, the steel output by the country has dipped significantly by nearly 50%.
Liberty Steel believes that fundamental reform in energy and a long-term partnership between the industry and the government could lead to strong revival of the industry. The scaling up of existing steelmaking facilities to enable green steel production and tapping the expertise and knowledge of the available highly trained workforce are also crucial for a turnaround of the UK steel industry, it added.
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