Updated April 13, 2020 17:23:53The steel industry has been on the rise in the UK over the past decade, but the government’s new energy and climate strategy is set to have a major impact on the industry.
The strategy will see an increase in the number of steel plants to meet increasing demand from the energy and renewable energy sectors, but also to help the industry meet the demands of an ageing workforce.
The government has set out its vision for the industry in its ‘Strategic Plan 2020-2021’ and it is likely that it will see a rise in output, with steel output in 2020 up by about 25 per cent to 1.25 million tonnes.
The number of new plants in the country, however, is set for a gradual decline as new investment in the industry is limited and new plant openings are made.
According to the latest government figures, the number the UK has currently built in the steel sector is 3,903, while it has more than 1.5 million steel workers in the workforce, a figure that is projected to fall to 1,876,000 workers by 2026.
A number of key industries, including the steel industry, are facing growing pressure on their finances, with the number and size of existing plants expected to fall.
It is expected that by 2023, the UK will have 1.4 million more steelworkers than it does today, with a potential increase of about 50 per cent in the numbers of steelworkers employed in the future.
The Government has also been working to help support the steelworkers by increasing the amount of money the industry can receive from the Treasury.
The Government has made a commitment to invest at least £1 billion in the sector by 2020, with investment in new plants and the introduction of incentives to encourage people to stay and contribute to the industry, which is expected to increase by more than £200 million.