‘The line’s running half-empty’: Llanwern steelworks feels the heat from cheap steel imports
Summary
Tata Steel’s Llanwern factory in south Wales is running at half capacity because cheap steel imports from countries like India and Vietnam have increased. Changes in government trade rules expanded the amount of steel these countries can send to the UK without paying extra tariffs, causing fewer orders for the UK-made steel and putting jobs at risk.Key Facts
- Llanwern steelworks has idle production lines and workers doing maintenance due to fewer orders.
- The UK government set a 50% tariff on cheap steel imports to protect local producers.
- Some countries, including India, Vietnam, and South Korea, received bigger tariff-free quotas for steel imports.
- India’s tariff-free quota for galvanised steel rose from 98,000 to 125,000 tonnes.
- Vietnam’s quota more than tripled from 51,000 to 174,000 tonnes.
- Galvanised steel is steel coated with zinc to prevent rust; Llanwern produces about 600,000 tonnes yearly.
- Tata Steel is transitioning to a cleaner electric arc furnace but job losses occurred when older blast furnaces closed.
- Increased cheap imports threaten the factory’s future and the company’s plans for greener steel-making.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
