‘The line’s running half-empty’: Llanwern steelworks feels the heat from cheap steel imports
New quotas to protect UK firms and jobs appear to be having opposite effect in products such as galvanised steel At Tata Steel’s factory in Llanwern, south Wales, production lines that should be running full-time are now falling quiet for parts of the day, with workers being put on to maintenance and cleaning work while machines sit idle. There aren’t enough orders to keep them running all the…
Tata Steel’s factory in Llanwern, south Wales, is experiencing reduced production due to an influx of cheap steel imports from Asian countries. The surge in imports, combined with increased tariff-free quotas for countries like India and Vietnam, has caused galvanised steel production lines to run only half-empty, threatening hundreds of jobs.
The new 50% import tariffs introduced by the government in July were intended to protect UK producers, but the situation has worsened for galvanised steel made at Llanwern, already producing about half of the UK's total demand. Tata Steel is considering switching to electric arc furnace production, which will reduce carbon emissions but could be jeopardised by prolonged tariff pressure.
The union representing Llanwern workers has called on the government to adopt a more robust approach to ensure the long-term sustainability of the steelworks.
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