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【Ferro-alloys.com】:The UK government has reaffirmed its commitment to invest £2.5 billion ($3.15 billion) to support the steel industry and protect jobs in the steel sector. This was announced in a statement by the government.

The funds will come partly from the newly created National Wealth Fund.

‘This could benefit regions across the UK – like Scunthorpe, Rotherham, Redcar, Yorkshire, and Scotland – which have a strong history of steel production. It will be spent on initiatives that will give the industry a long future – such as electric arc furnaces, or other improvements to UK capabilities,’ the statement said.

According to the government, Secretary of State for Business and Trade Jonathan Reynolds announced the launch of a consultation plan for the steel industry.

The consultations will look at the long-term challenges facing the sector, such as high electricity prices, unfair trade practices and scrap recycling in light of the industry’s transition to electric arc furnaces.

As noted, the government is already taking immediate steps to support the industry. Last week, for example, Heathrow Airport announced a multi-million dollar investment that will require 400,000 tonnes of steel. This will give the industry a powerful boost that will secure supply chains for years to come and contribute to economic growth as part of the Agenda for Change.

The government has also simplified the public procurement system and made it aligned with the government’s mission, including the Industrial Strategy, to put UK companies, such as those in the steel industry, in the best position to compete for government contracts.

The statement said: «That is on top of delivering a better deal for Port Talbot within weeks of taking office which will transform production at Port Talbot and deliver a modern Electric Arc Furnace, and implementing the British Industry Supercharger which will cut electricity costs for steel firms and bring prices more in line with international competitors».

These steps are part of a manifesto of commitments to secure the future of the UK steel industry.

‘The Government will work closely with the Steel Council towards the launch of the Steel Strategy in Spring, and the Council will continue to meet regularly following its publication to help drive investment into steelmaking communities across the country,’ the statement said.

• [Editor:Alakay]