UK industry addicted to imported steel

BRITAIN’S defence and nuclear industries are highly reliant on foreign steel, new figures show, as Boris Johnson considers whether to impose new tariffs on imports of the metal.

The UK is buying more than two thirds of the steel needed for the two key industries from abroad, according to government figures. The nuclear and defence industries spent £150m on the metal last year, of which just £45m came from British mills.

The disclosures come as Boris Johnson prepares to extend steel tariffs to protect the British industry. Critics say the plan will break international law.

In the late 1960s, the UK was the world’s fifth largest steel producer but it had dropped to 10th by the 1980s and to 18th by 2015. Britain’s steel industry is battling high energy costs and cheap imports from China.

The ability to make steel at home is seen as critical to maintaining Britain’s carmaking, aviation and broader manufacturing industries, because of the expense of moving the metal and growing supply chain worries.

Government figures show only 29pc of steel used in government-led nuclear projects came from the UK last year. Nuclear spent £142m on steel, most of it at the Sellafield site in Cumbria. Just £41m came from local mills.

The Nuclear Decommissioning Authority said: “The procurements were planned and were advertised to the market.”

Defence projects took 47pc of their steel from abroad because the right grades of the metal are not being made in Britain. Last year, the UK bought a total of £8.25m of steel for defence projects including the new Dreadnought submarine, Type 26 frigate and Type 31 frigate. Only £4.24m was from UK mills.

A government spokesman said: “Ministers want major infrastructure projects to buy British steel where possible.”