UK-based steelmaker Liberty Steel has proposed decisive government action in the form of strategic demand-side measures, cost competitiveness and co-investments to reverse the long-term decline in UK steel production and to set the industry on a sustained upward trajectory.
Highlighting that the government should take new measures to drive higher UK steel production by stimulating demand for UK-made steel, the company said it believes the Renewables Obligation on electricity suppliers could be adapted to the steel sector in the form of a Steel Obligation, stimulating demand for UK scrap from local mills and enabling more resilient, lower-carbon value chains in the country’s steel sector and associated strategic sectors.
“Today’s global economic and political context means UK policy needs to shift to creating sustainable demand for UK-made steel. As competing jurisdictions support their own steel producers and leave the UK vulnerable to global steel imbalances, the UK needs a new approach to its critical industries and capabilities. Demand-side policy measures and well-targeted co-investments in UK steel capabilities could keep more value in the UK,” Jeffrey Kabel, chief transformation officer of Liberty Steel, said.
