UK Steel CEO Gareth Stace told MEPs on the Speaking of Steel podcast that the government must create a "competitive business environment" for domestic steel producers after it intervened to save British Steel's Scunthorpe operations.
Stace interviewed Tom Sharp, editor-in-chief of the European Parliament, as part of the latest issue, entitled ’Can British Steel succeed in a tough British market?'. Steel market analysts, members of the European Parliament John Carruthers-Green and Chris Jackson, also shared their opinions in the podcast, which talks about the UK government's intention to take control of take control of the steel company.
Jackson described the Scunthorpe steel mill as a "strategic asset" for the UK. He said that the company, specializing in the production of long products, including railway, plays a crucial role in the supply of materials for national infrastructure projects.
Carruthers Green drew attention to the maintenance costs, however, British Steel Scunthorpe's operations are continuing. After announcing its intention to close two blast furnaces at the Scunthorpe plant, the company's owner, the Chinese Jingye Group, had previously stated that the plant was suffering financial losses of 700,000 pounds per day. The UK government is currently in control of the site and is looking for a new owner to ensure its long-term viability.
"We're going to have some serious questions over the next few years," Carruthers-Green said. "We have seen a statement from the Business minister in Parliament saying that they have already spent 94 million pounds in about three weeks to keep the business running.
"Obviously, they had to buy a lot of raw materials for this, but nevertheless, it gives you an idea of the amount of money that needs to be spent to keep the website running."
‘Unstable and unacceptable’
In an interview for the Speaking of Steel podcast, Stace said that the UK government would be looking for an investor to buy British Steel, but clarified:" What will they buy? They would invest in a sector in the UK that still operates in an uncompetitive environment. For example, energy costs here are still 50% higher than those paid by steel companies in France or Germany. "
Stace added:" What we've seen over the last two years is imports growing from about 50% of UK steel demand to an alarming 65%? This is unsustainable and unacceptable. So, the upcoming steel production strategy, which I hope will be published by the UK government in the next few months, should
