UK steel industries ‘at risk of collapse’

A major steel industry company is warning of a collapse of the UK’s steel industry and warns that its clients could suffer as a result.

The Scottish-owned Scottish Steel Association (SSAA) said the collapse of a number of European steel companies was a serious threat to its industry.

The group, which represents more than 4,000 of the country’s 1,500 steel mills, said it had been warned by EU regulators about problems with its plants in Germany, the Netherlands, Poland and Hungary.

It said a number were under threat of closure in Poland, Hungary and the Czech Republic.

The SSAA has about 7,500 members, and said that as a consequence of the shutdowns, many of its members are not able to keep up with the pace of the industry’s production.

In a letter to industry minister, the group said the UK steel industry had experienced a “relatively steep decline” in output since it began its transition from coal to renewables in 2009.

“As a result, our UK Steel production has been at an annualised loss of £7.3 billion since the start of the transition to renewable energy in 2009,” the letter said.

“This has led to a significant reduction in production, which in turn has impacted on the overall financial position of our company.”

We are also seeing a significant decline in output at our European facilities.

“Our clients have experienced the full impact of the global financial crisis.”

The closure of the sector is the direct result of this financial crisis, and we are very concerned that the industry is at risk of a further downturn.”‘

The collapse of an industry is an inevitable consequence of a financial crisis’The SSAGA also warned that “there is a risk that we will not be able to continue as we continue to compete in the market, and the industry will experience the full extent of the impact of this crisis”.

It said the industry was facing a “dramatic decline” because of the economic and regulatory uncertainty caused by the financial crisis in Europe.”

Due to the financial difficulties, our customers are now facing a serious economic crisis.

We have also been informed that some of our European competitors are facing similar problems.

“While our industry is resilient and will thrive, our business is now in jeopardy,” the SSAA said.

The letter said the government had failed to respond to its concerns.

The government has promised to make a commitment to help to restore the steel industry by creating jobs.

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