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Britain’s Steel Crisis Deepens

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Lana Clemens, Daily Express

Another 1,800 British steel workers are to lose their jobs as Caparo Industries is set to file for administration, according to reports. Higher energy prices, a strong pound and Chinese exports have factored into the industry’s decline in the UK.

steel worker
 
 Britain’s steel industry is under large pressure

The firm is owned by Labour peer Lord Paul and has around 20 sites in the country, including the West Midlands, and is the latest company to fall amid the pressure on the sector. 

Tata Steel is tomorrow expected to also announce the loss of 1,200 jobs in Scunthorpe and Scotland. 

It comes less than a week after 2,200 people were put out of work as a result of the closure of the Redcar steel and Iron plant in Teeside. 

The sector has been struggling amid a fall in metal prices, in part thanks to a drop in demand from China and developing economies.

Higher energy prices and a strong pound have also factored into the industry’s decline in the UK.

In July Karl Koehler, chief executive of Tata Steel’s European operations urged the Government to step into to provide help for Britain’a ailing steel industry.

Months later and no action is seeing thousands of people lose their jobs. 

At the time, Mr Koehler said: “Energy is one of our largest costs at our speciality and business and we are disadvantaged by the UK’s cripplingly high electricity costs.

“And while the UK Government announced helpful measures to reduce the impact of its high energy taxes a few years ago, these measures still haven’t been introduced.

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