Workers put on 'light duties' as cheap imported steel floods market

Aerial view of steel plant industry in Port Talbot with smoke rising into the sky

Cheap imported steel flooding the market is causing lower demand and prices, companies say.

Andrew Gutteridge, who worked at Llanwern for over 30 years, said some workers were on lighter duties after cheap imports flooded the UK market.

Tata Steel, which operates the works in Llanwern, said the changes were having a significant impact on its business.

The UK government said the measures were introduced to strike a balance between protecting domestic production and maintaining a secure supply.

An aerial view of the Llanwern steelworks taken in 2017.

It follows changes to the tariffs levied on foreign steel which meant imported products are subject to quotas, with some products being subject to taxes, making them more expensive.

Concerns were raised about the impact new steel taxes could have on manufacturing and engineering companies.

Community Union president Andrew Gutteridge said there had been substantial increases to galvanised steel imports from Vietnam, South Korea and India, since the move in July.

He said it had reduced Llanwern's UK market to just 25% and meant that workers were having a lot of downtime with production lines that are not constantly running.

"At the moment everybody is coming into work," he said.

"Tata is still making massive losses so the concern from the workforce is how long can it continue."

Gutteridge said it was heartbreaking to see imported galvanised steel from Vietnam coming into Newport Docks when the plant is just 10 minutes away.

He suggested a reduction in EU quota access which he said was placing additional pressure on the UK's steel operations.

He added: "I'm hoping the government will either come up with some funding or something to sort these tariffs.

"It is massively worrying concerns for Llanwern and the other downstream businesses."

UK steel industry affected

The UK government's steel strategy was announced in June and aimed to boost domestic steel.

Gutteridge said most of it is "absolutely fantastic" but added that the government "needs to step up and do something" to tackle the rise in cheap imports.

"Unfortunately I'm picking up that it could be 12 months before this is reviewed," he added.

He said this could have implications for other parts of the UK steel industry such as the electric steel-making furnace in Port Talbot.

Tata Steel said plans could be delayed for up to eight months due to an electrical issue.

"I'd like to think that Tata are going to stick with us, but it's not just Llanwern," said Gutteridge.

"This issue needs to be sorted and it needs to be sorted now."

The Welsh government said it was engaging "closely with steel producers" and will continue to monitor the steel measures.

"We will raise this issue with the UK government at the earliest possible opportunity," they added.

The UK government said the final quota was "shaped by extensive engagement with the industry".

"We will continue to take industry feedback into account, monitor the impact closely and review the measure after 12 months."

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Original source Workers put on 'light duties' as cheap imported steel floods market

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