Thousands more steel jobs could be lost if action is not taken to tackle the threats facing the industry’s “vulnerable” supply chain, the Government is being warned.
The International Steel Trade Association (Ista) said scores of medium sized firms were at risk if the crisis gripping the industry escalates.
Thousands of job losses have been announced in recent weeks by Tata Steel and SSI in Redcar, Scunthorpe and Scotland, with cheap imports and high energy costs being blamed.
Business secretary Sajid Javid will meet EU commissioners in Brussels on Wednesday to press the case for firmer action on unfair trade operations damaging the UK’s steel industry.
The UK government wants to see steel at the top of the agenda at the next EU Trade Council meeting.
Mr Javid will be meeting the EU Trade Commissioner, Cecilia Malmstrom, the Commission vice-president for jobs and growth, Jyrki Katainen and the Industry and Internal Market Commissioner, Elzbieta Bienkowska.
Ista warned of further job losses if suppliers cannot buy steel competitively.
Chairman Jeffrey Kabel said: “There is now a real knock-on risk to various sectors including major infrastructure projects, hi-tech specialist manufacturers such as aviation and defence, as well as the automotive sector and traditional markets such as construction, as a result of the devastating news at Redcar, Scunthorpe and elsewhere.
“There is an escalating threat which is moving rapidly along the supply chain. We are not talking here solely about giant manufacturing facilities in close-knit communities, or the steel belt in Scotland and the Midlands, but small and medium-sized firms scattered across industrial estates, town-centre office buildings and ports nationwide.
“These are the steel products providers, traders, shippers and distributors who feed their customers with high quality steel and bespoke products, which are the lifeblood of so many manufacturing and infrastructure projects.”
The Business Select Committee is holding a session on Tuesday into the steel crisis, with witnesses including MPs, the Community trade union, trade body UK Steel and Business Minister Anna Soubry.
Committee chairman Iain Wright said: “The UK’s steel industry has been dealt a series of major blows in recent weeks and months. It is facing terminal decline, even though it is an essential foundation for other parts of our economy like aerospace, construction and automotives.
“As a committee we will be pressing the Government to explain what action it is taking now to help the steel industry through this crisis and its plans to support the industry as part of a competitive and dynamic manufacturing sector in the long term.”
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