The steel industry: statistical summary of the UK and international industry; analysis of current prospects; summary of Government policy; timeline of events.Jump to full report >>
Autumn 2015 saw a crisis in the UK steel industry with the closure or reduction in capacity at major plants in Redcar, Scunthorpe, Scotland and South Wales.
In response, the Government introduced a number of measures to support the industry and those affected by the closures.
This note provides an overview of the scale of the industry, the recent crisis and the Government’s response to it, as well as the implications of Brexit on the industry.
In 2015, the UK produced 11 million tonnes of steel. China produced 804 million tonnes in the same year.
The EU as a whole produced 166 million tonnes of steel in 2015. The UK was the fifth largest steel producer in the EU, after Germany, Italy, France and Spain.
In March 2016, Tata Steel announced that it was examining options to sell its UK steel operation. In May it sold its long products division employing 4,400 people. In July, the sale was put on hold while it attempted to merge the majority of its remaining operations (employing 9,000 people) with other steelmakers, but Tata said it would sell its speciality steel business (employing 2,000 people). In April 2016, the UK Government announced that it was willing to take a 25% stake in Tata’s UK operations and provide other financial support.
Commons Briefing papers CBP-7317
Author: Chris Rhodes