Eluned Morgan MS, First Minister of Wales
The Welsh Government has fought tirelessly for steel and our steel communities here in Wales for many years. We recognise that it has remained a difficult time for our communities and workers who continue to worry about the future of steel given the ongoing pressures the sector faces.
Today, the UK Government has published its Steel Strategy for the UK which provides a long-awaited pathway for the steel sector into the future. I was pleased to be at Port Talbot for the launch of the Strategy by Peter Kyle MP, Secretary of State for Business and Trade and to have the opportunity to discuss it with the industry and representatives from the steel unions.
I am also pleased that the Strategy acknowledges the significance of Welsh steel production, with Wales expected to account for around half of the UK's steelmaking capacity. The Strategy confirms that the technology of electric arc furnaces, like the one being built at Port Talbot and already being used in 7 Steel, represents the future for steel making production in the UK.
The Strategy aims to stabilise the sector, ensure its viability, and return domestic production to recently sustained levels of around 40-50% of domestic steel demand, compared with 30% in 2024. Welsh producers such as Tata Steel and 7 Steel will benefit from this aim for more steel used in Britain to be made in Britain. This will help ensure that steel produced in Wales will have further opportunities to support sectors including construction and clean energy.
The introduction of new trade measures provides much needed clarity for the sector with existing trade measures due to expire at the end of June this year. From 1st July overall quota levels for steel imports will be significantly reduced by 60% compared to current arrangements and steel coming into the UK above these levels will be subject to a 50% tariff. Over the coming weeks we will be working with the UK Government to consider the specific details of this and other steel trade measures announced by the UK Government today and to understand next steps in relation to their impact on Wales and to take forward participation in the Policy Working Groups.
With the transition of Tata Steel to electric arc steelmaking firmly underway and ongoing development of the 7 Steel plant, it is critical that the sector and its supply chains have a supportive operating environment.
Work to deliver the Strategy will be undertaken through a number of working groups that will underpin the aims of the Strategy and address the needs of producers and supply chains. The Welsh Government will be working directly with the UK Government as part of these groups to ensure the interests and expertise we have in Wales are fully represented. This will build on the representation of the Cabinet Secretary for Economy, Energy and Planning on the Steel Council and its role in shaping the Strategy.
We remain absolutely committed to promoting and supporting the Welsh steel sector at every opportunity and will work to ensure the opportunities presented through this Strategy are maximised for all our steel plants - 7 Steel, Tata Steel and Tata Steel’s downstream plants at Llanwern, Shotton, Trostre and Catnic as well as our manufacturing sector more broadly.