The Tata Steel UK plant in Llanwern, South Wales, is reportedly operating at about half of its capacity amid increased competition from steel imports at lower prices following changes to duty-free steel import quotas in the UK, the company said in a statement published by The Guardian.
The Llanvern plant, which annually produces about 600,000 tons of galvanized steel, which accounts for almost half of the UK's demand, is experiencing a shortage of orders to ensure the smooth operation of its production lines. It is reported that during periods of downtime of production lines, employees are assigned maintenance and cleaning work.
Higher quotas for galvanized steel increase import competitionDespite the fact that in July the UK imposed 50% duties on steel imports exceeding duty-free quotas, quotas for some suppliers of galvanized steel have been increased. India's quota increased from 98,000 tons to 125,000 tons, while Vietnam's quota more than tripled from 51,000 tons to 174,000 tons. South Korea was allocated a quota of 100,000 tons.
Tata Steel UK has expressed its concern to the UK Government about the current situation. Russell Codling, commercial director of Tata Steel, said that the new quotas have already had a significant impact on the Zodiac galvanizing line in Llanwern and that the current situation is unsustainable.
The tension in Llanwern is raising concerns about the move to Port Talbot.
. At the same time, concerns were expressed that continued pressure on Tata Steel's production facilities could lead to lower productivity. Production processes may also affect the company's transition to smelting steel in electric arc furnaces at the Port Talbot plant. Tata Steel is investing 1.25 billion pounds, including a government grant of about 500 million pounds, in the construction of a three million ton electric arc furnace in Port Talbot. Trade union community
The UK also called on the government to take tougher measures to protect Llanwern, highlighting the company's role in providing galvanized steel to the automotive and construction industries.
The UK government has stated that its steel trade measures are designed to strike a balance between protecting domestic production and ensuring reliable supplies. He added that the volume of imports for the relevant product category is currently below the established quotas, and that he will continue to monitor the impact of this measure. The quota system is scheduled to be reviewed in 12 months.
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, ,, Author:, Editorial staff of SteelOrbis,
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