WIREDGOV

Economy Minister Edwina Hart is backing demands for urgent action from the UK Government to address high energy costs that are disadvantaging the steel industry in Wales and across the UK against overseas competitors as she attends a top level Steel Summit in Rotherham today.

Welsh Government, together with steel industry leaders, has repeatedly called for the UK Government to do more to curb energy prices that are seriously disadvantaging the steel industry in Wales and the rest of the UK, threatening hundreds of jobs.

In August Tata Steel announced it would be mothballing its hot strip mill at Llanwern to concentrate production at Port Talbot and last month it was announced the company also intended to mothball one of its galvanized steel lines at Shotton.

Today’s Steel Summit in Sheffield has been convened to explore opportunities for collaborative working between public and private sectors and identify potential solutions to address the unprecedented challenges currently facing the UK steel industry. Due to attend with Mrs Hart are ministers from several UK departments, including BIS and DECC, as well as representatives from steel companies and trade unions.

Speaking ahead of the summit, Mrs. Hart said:

“As a pro-business government, we already work closely with the steel industry in Wales, including Welsh anchor companies Tata Steel and Celsa Steel, because we recognise its importance to the local economy and are committed to finding solutions to the challenges it currently faces.

“We already provide a considerable amount of support to this sector across areas such as skills and training, research, development & innovation (R&D&I), and environmental improvements. However, everyone has a part to play and we feel not enough is being done at a UK level.

“The steel industry in Wales and across the UK continues to be seriously disadvantaged by high energy costs and cheap imports. These combined pressures mean that a number of Wales-based companies are reaching a critical point and jobs are in jeopardy.

“More support to address these matters at a UK level will be key in allowing Welsh businesses to operate on a level playing field, not only in the UK but also within global markets. I hope today that we can reach agreement to try to secure a collaborative and sustainable way forward.”

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