The British steel industry is in danger of incurring more job losses if the government does not take any measures to protect local producers, according to British media sources.
In September, Sahaviriya Steel Industries UK (SSI) suspended production operations at its Redcar plant located in Teesside, northern England, as the company has suffered from declining steel prices, Accordingly, 2,200 jobs were lost.
This month, British steelmaker Caparo Industries has filed for bankruptcy protection, putting 1,700 steel jobs at risk.
In addition, Tata Steel Europe, the European unit of the India-based steel giant Tata Steel, announced on October 20 that it has been forced to make changes to its European long products business in response to a shift in market conditions caused by a flood of cheap imports. The proposed changes would lead to around 1,200 job losses in England and Scotland.
After this announcement, the government and Tata Steel have announced an initial support package of up to £9 million to support the local economy and employees affected by the proposed restructuring and job losses.
It has been stated by British media that job losses resulting from the above three announcements could reach a total of around 15,000 jobs when contactors and supply chain companies are taken into consideration.
The British steel industry is expecting the government to take measures to help the struggling industry. Among the expected measures are the prevention of China from dumping cheap steel into the UK market, a cut in business rates for the steel industry and a fairer system of valuation, lowering energy costs and green taxes for local plants which pay more than their foreign competitors, and promotion of domestic products.