BUILDING A FUTURE

FOR STEEL

A UK Steel Manifesto
May 2017
BUILDING A FUTURE FOR STEEL https://www.eef.org.uk/uk-steel

INTRODUCTION

The global forces that

shook the UKs steel
sector in recent years have
receded somewhat for the
time being. But, the
underlying causes are still
present and there remains
much to do, at both a UK
and a global level, to
deliver the foundations for
a more sustainable and
more prosperous steel sector. Nonetheless, the current breathing space, provided by
rising steel prices and the steep reduction in sterling, does afford us some opportunity
to pause and take a more strategic, longer term approach.

This is not a case of the sector or the government resting on its laurels, but simply
placing a greater focus on the future. And the UK steel sector has a positive vision of
its future, at the very centre of UK manufacturing. Our aim is to be a modern,
productive, innovative, world leading sector, capable of beating off competition from
around the globe, expanding our share of both UK and overseas markets. In doing so,
we will continue to be a provider of high skilled jobs and opportunities in regions
throughout the UK.

We must ensure we are an important part of the solution to rebalancing our economy
in a post-Brexit Britain, by taking every opportunity to bolster and develop the hollowed
out supply chains that at present limit the full potential of the UKs manufacturing
sector. As anchor businesses, steel companies have the opportunity to act as
catalysts, pushing ground breaking initiatives to stimulate innovation, develop skills
and improve productivity within the many SMEs sitting between them and the ultimate
end users, be they in the automotive, aerospace, construction or public sectors.

A healthy and productive steel sector is not an end in itself, but a means to supporting
hundreds of other companies and boosting the output of the UKs manufacturing
sector as a whole. In helping us achieve our vision for the future, the government will
know that it is delivering not just for steel companies, workers, and communities, but
manufacturing, and the UK economy as a whole.

Theres a bright future for UK steel, we challenge the incoming government to help us
realise it.
BUILDING A FUTURE FOR STEEL https://www.eef.org.uk/uk-steel

Steel in the UK

The UK steel sector contributes 1.2bn gross value added for the UK
economy

The UK sector produced some 8 Million tonnes of steel 2016, with over half
of this exported, 70% to the EU, therefore providing a major contribution to
the UKs balance of trade

The steel industry directly employs 31,300 people in well-paid and skilled
jobs in areas of high socio-economic deprivation, including South Wales,
North East England and the Humber

Beyond those directly employed, it is estimated the UK steel sector supports

a further 120,000 jobs in its supply chains

Steel produced in Sheffield remains an integral part of our defence industry

supply chain having already supplied navies around the world for over 150
years

British steel can be found in well-known buildings across the UK, including
the Olympic Stadium, the Shard, Old Trafford, and Wembley Stadium

Almost 50% of UK carmakers steel requirements are supplied from the UK

96% of Network Rails steel rail is produced in Scunthorpe

Specialised steel produced in Rotherham can be found in every Boeing and

Airbus civil aircraft in production today.
BUILDING A FUTURE FOR STEEL https://www.eef.org.uk/uk-steel

Tools for the Future

1. Maintaining seamless trade between the UK and the EU

Steel products will not attract EU tariffs even under a no-deal scenario, but it is highly
likely many of our manufacturing customers products will. The imposition of tariffs on
manufactured products, as well as complex customs procedures, and changes to rules
of origin, would significantly disrupt the many complex supply chains that criss-cross
the EU and that we rely upon. Securing the best possible trade deal for the UK is the
top priority for any incoming government.

2. A robust trade defence instruments regime

Trade defence instruments (TDI) implemented by the EU Commission have been vital
to stemming the flow of under-priced, dumped, steel products imported into the UK.
The safe-guards these provide will lapse upon our EU departure and the responsibility
for such measures will fall on the UK government. It is vital that a UK tailored TDI
structure is developed and in place from day one to ensure free trade.

3. Competitive energy prices

Electricity prices for UK steel producers remain uncompetitive; we estimate German
steel producers are paying just 50% of those in the UK. This price differential costs
the UK sector over 50 million a year, seriously undermining competitiveness. An
incoming government must take action quickly to reduce this price differential, provide
new mechanisms to help industry improve its energy efficiency and develop a
roadmap to guaranteeing competitive energy prices for the long term.
BUILDING A FUTURE FOR STEEL https://www.eef.org.uk/uk-steel

4. Positive public procurement

An incoming government must build upon the publication of the public procurement
guidelines for steel to ensure they actually deliver for the sector. Further necessary
measures must include, the collection and publication of information on steel procured
by all public bodies, improvements to the annual steel pipeline data and the
extension of the procurement guidelines to projects indirectly funded by the public,
such as low-carbon energy projects.

5. Reform of business rates

Steel companies have committed to continued investment in their facilities in the UK,
but the appetite to do this continues to be hampered by the business rates regime
which perversely penalises companies for making improvements to their
manufacturing operations. A new government must once again look at the
disincentives produced by the current system and commit to removing plant and
machinery from the calculation of business rates bills.

6. A steel sector deal

The steel sector strongly welcomes the new commitment, across the political
spectrum, to a new and enhanced industrial strategy. As part of this, we want to build
a long lasting partnership between government and industry through an ambitious
sector deal that equips us for the challenges of the future. Such a partnership must
aim to: expand R&D and product innovation programmes, boost investment, increase
production and exports, help us deliver shared decarbonisation goals, maximise our
potential within the circular economy and ensure we truly deliver for the steel
customers of the future.
BUILDING A FUTURE FOR STEEL https://www.eef.org.uk/uk-steel

UK Steel is the trade association for the UK steel industry. As

the voice of the steel industry, we interface with government and
parliament in both London and Brussels to influence policy
so that it underpins, rather than undermines, the long term
success of our sector.

Membership of UK Steel is open to all UK-based companies and

organisations involved in the production of steel and
downstream processes.

UK Steel T: +44 (0)20 7222 7777

Broadway House, E: steel@eef.org.uk
Tothill Street, Twitter: @EEF_UKSteel
London W: www.eef.org.uk/uksteel
SW1H 9NQ

Images Credits:
Title Page: Clearing The Gate, taken by Mark Tomlinson at Sheffield Forgemasters International, winner of the amateur category of the EEF Photography Competition 2015.
PAGE 2: BS-HeavyEnd1, taken by Steve Morgan at British Steel Scunthorpe, shortlisted in the professional category of the EEF Photography Competition 2016.
PAGE 3: VeloPark, image taken by Anthony Charlton at the Olympic Park in London, shortlisted in the Professional category of the EEF Photography Competition 2014 sponsored by Lombard, Canon and The ERA Foundation
PAGE 4: Credit: Fine Day for Fishing, taken by Dave Charnley at Redcar, shortlisted in the professional category of the EEF Photography Competition 2015.
PAGE 5: Number 5 Blast Furnace, Port Talbot Steel, 2007, Wikipedia Commons