LIBERTY Steel’s submission to the UK Steel Strategy consultation has proposed decisive Government action calling for strong government intervention through strategic demand-side measures, enhanced cost competitiveness, and co-investment initiatives, to reverse the long-term decline in UK steel production and set the industry on a sustained upward trajectory.
One of the main aspects of the new measures involves increasing UK steel production by stimulating demand for UK-made steel. Liberty has suggested that the model similar to the Renewables Obligation, the Renewables Obligation on electricity suppliers, could be adapted to the steel sector as a Steel Obligation.
A carefully designed Steel Obligation would help drive demand for UK-sourced scrap metal in domestic steel mills, fostering stronger, lower-carbon supply chains in the UK steel industry. This would also benefit key strategic sectors such as aerospace, infrastructure, and defense.
Liberty also pointed out several strategic investments for the mills if the conditions permit. The concept is to enhance the existing capabilities of the company to meet the demands of the industries of the future while generating value for the UK economy. Potential investments include the new EAF and slab caster at LIBERTY’s Rotherham mill, which could increase the site’s production capacity from 1.2Mtpa to 2Mtpa and ensure to provide the UK with what it needs for the next generation of offshore wind towers.
According to the report, an investment in LIBERTY Steel’s Dalzell plate mill has the potential to significantly strengthen the UK’s offshore wind supply chain, reducing reliance on imported steel and capturing more economic value domestically by internalising more of the offshore wind value chain and making complementary UK investment in wind tower manufacturing.
Jeffrey Kabel, LIBERTY Steel’s Chief Transformation Officer said, “GFG welcomes the Government’s recognition that a thriving, competitive UK steel industry is key to a successful, modern, low carbon economy. The UK steel sector, and LIBERTY in particular, has tremendous strengths and could play a larger role in growing the industries of the future like wind power, aerospace and defence and civil infrastructure.
“Today’s global economic and political context means UK policy needs to shift to creating sustainable demand for UK-made steel. As competing jurisdictions support their own steel producers and leave the UK vulnerable to global steel imbalances, the UK needs a new approach to its critical industries and capabilities,” He added.