The UK government’s new Infrastructure Strategy has been welcomed as supportive for the domestic steel sector, Kallanish observes.
Industry association UK Steel welcomed the move noting the developments worth “billions of pounds,” would bring opportunity for steelmakers. However, it noted that a competitive environment remains vital.
It highlighted that millions of tonnes of steel will be needed for the Infrastructure Strategy investments in new nuclear capacity, regional transport, schools and prisons, announced by the Government. The association also highlighted Chancellor, Rachel Reeves, saying in her recent Spending Review speech that these projects should be made using UK-made steel.
It added that the announcement offers businesses clarity over the Government’s long term public procurement plans and how steel companies can support these ambitions and grow their own production. However, it noted that ongoing market confidence for steel companies will be cemented with truly competitive electricity prices, strategic domestic public procurement and reinforced trade defences.
UK Steel director-general, Gareth Stace, said: “Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the United Kingdom. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.”
“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where,” he added.
“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel,” he concluded.
Meanwhile, the British Constructional Steelwork Association also welcomed the strategy and said it was a “strong signal of intent to deliver not only infrastructure, but also industrial resilience and regional growth.”
It praised the commitment to reform public infrastructure procurement, which it said valued whole-life performance over lowest upfront price. As well as clearer, longer-term project pipelines that support investment in UK-based fabrication capacity and skills.
It also welcomed the shift towards prioritising domestic supply chains to support sustainability, employment, and strategic national capabilities.
“The constructional steelwork sector is ready to build the infrastructure of the future – greener, safer, and made right here in the UK. Let’s seize this opportunity to turn strategy into delivery,” it added.
Carrie Bone UK
