PORT TALBOT: Government vows to “do whatever it takes” to protect steel jobs — but critics warn over end of traditional steelmaking
A major new Steel Strategy has been unveiled during a visit to Port Talbot, with ministers promising tougher trade rules, billions in investment and a push to increase the amount of steel made in Britain.
At the centre of the plan is a target for 50% of all steel used in the UK to be made domestically — up from around 30% — with the Government saying Welsh producers are expected to play a major role.
That includes Tata Steel operations in Port Talbot, Llanelli, Shotton and Newport, as well as 7Steel in Cardiff.
The UK Government says it will also crack down on cheap imports.
From July, steel import quotas would be cut by 60%, with anything above those limits facing a 50% tariff.
Ministers argue the move will stop British steel being undercut — a long-standing complaint from workers and industry leaders in South Wales.
But the strategy has already sparked debate about what kind of steel industry the UK is actually protecting.
Massive ladles and overhead cranes inside Port Talbot steelworks, as Tata prepares the site for Electric Arc Furnace installation. (Credit: Tata Steel)
While ministers are backing domestic production, the plans also confirm a continued shift away from traditional blast furnaces towards electric arc furnaces, like the one being built in Port Talbot.
These use recycled scrap metal rather than raw materials — a move the Government says is key to cutting emissions and modernising the industry.
However, critics warn that transition could come at a cost.
They argue electric arc furnaces cannot always produce the same specialist grades of steel needed for defence and major infrastructure, raising concerns about long-term capability.
There are also fears the UK could become more reliant on imported materials — even as ministers move to restrict finished steel imports.
Peter Kyle, Business and Trade Secretary, said steelmaking was “vital” to the UK’s future.
He said: “Making steel in the UK is vital for national security, critical infrastructure and the wider economy.
“With this strategy we are closing the decades-long chapter of destructive de-industrialisation and committing instead to strengthening and sustaining Britain as a steel-making nation.”
The Government says the strategy is backed by major investment, including £5.8 billion through the National Wealth Fund for priority industries such as steel.
That builds on more than £600 million already committed to Port Talbot, alongside plans to unlock up to £2.5 billion in further funding during this Parliament.
Jo Stevens, Secretary of State for Wales, said the plans showed ministers were standing firmly behind Welsh industry.
She said: “The UK Government is standing up for Welsh steelmaking and showing that we will do whatever it takes to boost domestic steel production and protect the thousands of steelmaking jobs in our communities.
“Welsh steel is expected to account for half of future UK steelmaking… Welsh steelmaking now has a secure and bright future.”
The strategy also includes measures to lower energy costs, prioritise UK-made steel in public projects and strengthen links with sectors like offshore wind, defence and infrastructure.
A new working group will also look at securing long-term supplies of scrap metal — a key part of the shift towards electric arc production.
The move comes after years of uncertainty for the industry, with global competition, rising costs and the transition to greener production putting pressure on steelmaking communities across South Wales.
Ministers insist imports will still play a role, but say the new rules are designed to strike a balance between protecting domestic producers and maintaining supply.
However, with the industry undergoing one of its biggest transformations in decades, questions remain over whether the strategy will truly secure the long-term future of steelmaking in Wales — or simply reshape it.
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