Global industrial leader GFG Alliance has announced that it welcomes the UK government’s commitment to invest £600 billion in infrastructure projects in the next five years.
However, the company said that it is very crucial for the industrial sector that the UK government prefers the steel produced in the UK to supply important projects and tries to solve the problems that manufacturers are faced with such as high electricity prices and the business rates system. The company commented that steel plants in the UK need to be improved to avoid the same situation which British Steel faced recently.
GFG Alliance urged the UK government to use the investment projects as a foundation in order to assure the long-term future of towns located at the industrial center of the country.
According to British steelmakers association UK Steel, 2,000 jobs in the steel sector would be guaranteed and the 2 million mt of steel which is expected to be required for the planned High Speed 2 (HS2) railway project in the country would contribute £1.5 billion to the economy if such projects use steel produced in the UK. UK Steel said the UK government should set clear targets regarding steel supply for major projects, like in the US.