The new Steel Strategy launched by the UK Labour Government today will boost domestic steel production and protect thousands of steelmaking jobs in Wales according to Llanelli MP, Dame Nia Griffith.
The MP, a long-standing advocate for the Welsh steel industry and whose constituency includes the Tata Steel plant in Trostre, said the landmark plan will increase the use of British made steel in British projects as well as introduce a new tariff scheme to protect domestic steelmakers in the face of global overcapacity in the sector.
Dame Nia said:
“The steel industry is a vital core element of our economy here in Wales, generating growth and providing thousands of jobs, including hundreds in my own constituency here in Llanelli.
This is a clear, well thought-out, long-term strategy for our steel industry that will help deliver the high-quality steel our country needs for our key infrastructure, our national security and for the wider economy. At the same time, it is also a resounding signal that we are on the side of local steelworkers and prepared to act against the unfair practice of dumping of underpriced imports into our marketplace.
The previous Tory Government completely failed Welsh steel. This strategy is long overdue and will go a long way to stand up for the interests of the Welsh steel industry, give it a firmer footing for years to come and protect so many jobs and livelihoods that rely on a successful steel industry and its supply chain.”
Under the new UK Steel strategy, which builds on support already put in place to including slashing electricity costs for producers via the Supercharger, reforming procurement rules to ensure more domestic steel is considered for public projects and speeding up grid access for new investment projects, the UK Labour Government will:
- Introduce new trade measures to protect and promote domestic steelmaking and reduce reliance on overseas suppliers. From 1 July 2026, overall quota levels for steel imports will be significantly reduced by 60% compared to current arrangements, and steel coming into the UK above these levels will be subject to a 50% tariff.
- Set a new target for 50% of steel used in Britain to be made in Britain, boosting production from 30% with Welsh steel expected to account for half of future UK steelmaking.
- Allocating an additional £5.8bn to the National Wealth Fund to invest in its priority sectors, including Welsh steel which builds on over £500m already invested in Port Talbot’s Electric Arc Furnace protecting 5,000 skilled jobs and £122m funding from UK Government and Tata through the Port Talbot Transition Board to help thousands of workers and hundreds of businesses transition to Electric Arc Furnace steelmaking.
Dame Nia added:
“This comprehensive package of support and investment will back our steelmakers and local steel communities and finally deliver the level playing field our industry needs and deserves.”