The UK-based trade association UK Steel has stated that it has found that new government infrastructure projects may spend over £1.5 billion on steel bought from abroad. The association added that the new administration should make a commitment to use local steel in these projects.
According to available data, it is estimated that £4.3 billion will be spent on steel procurement for public investments in the next decade. However, the latest data confirm that only 66 percent of this steel will be purchased from UK steelmakers. According to the association, if this trend continues, the UK is potentially missing out on at least £2 billion of cumulative direct and indirect gross value added.
Stating that a big amount of the steel required for these projects can be produced locally, UK Steel emphasized that more steel capacity investments are needed to meet all the steel grade needs, especially for renewable investments.