{"id":593426,"date":"2026-08-23T10:58:10","date_gmt":"2026-08-23T10:58:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/593426\/"},"modified":"2026-08-23T10:58:10","modified_gmt":"2026-08-23T10:58:10","slug":"the-lines-running-half-empty-llanwern-steelworks-feels-the-heat-from-cheap-steel-imports-steel-industry","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/593426\/","title":{"rendered":"\u2018The line\u2019s running half-empty\u2019: Llanwern steelworks feels the heat from cheap steel imports | Steel industry"},"content":{"rendered":"

At Tata Steel\u2019s factory in Llanwern, south Wales<\/a>, production lines that should be running full-time are now falling quiet for parts of the day, with workers being put on to maintenance and cleaning work while machines sit idle.<\/p>\n

There aren\u2019t enough orders to keep them running all the time, the company says, because of a surge of cheap steel coming from Asian countries<\/a> that is threatening the viability of several UK sites that make similar products, and risk hundreds of jobs.<\/p>\n

\u201cThe line has been left running half empty, and the result of that is it won\u2019t last very long unless we can find a solution here,\u201d said one insider.<\/p>\n

New 50% import tariffs introduced by the government<\/a> in July were designed to protect against cheap steel from countries including China and India from undercutting UK producers such as Tata.<\/p>\n

But for some types of product, such as the galvanised steel made at Llanwern, near Newport, the situation has worsened, after the government increased the tariff-free quotas \u2013 the amount of steel that can be brought in without paying the levy \u2013 for some countries.<\/p>\n

India\u2019s allowance of galvanised steel rose from 98,000 to 125,000 tonnes, while Vietnam\u2019s more than tripled, from 51,000 to 174,000 tonnes. South Korea was given an increased quota of 100,000 tonnes.<\/p>\n

Steel pipes at a factory in Que Vo, outside Hanoi. Vietnam\u2019s UK allowance of galvanised steel more than tripled to 174,000 tonnes. Photograph: Kham\/Reuters<\/p>\n

The larger quota for India is understood to have been a last-minute move to help get a trade deal with the country over the line, which was first reported by the Financial Times. World Trade Organization rules require comparable exporters are. reated equally, forcing the increase in quotas to Vietnam and South Korea.<\/p>\n

Earlier this summer the Tata UK boss, Rajesh Nair, said he was \u201cvery concerned\u201d about the new arrangement.<\/p>\n

Now, nearly two months later, Llanwern is struggling to compete on price and running at about half capacity as a result. The factory produces about 600,000 tonnes of galvanised steel a year, nearly half the UK\u2019s total demand.<\/p>\n

Galvanised steel is a type of steel that has been dipped in molten zinc, giving it a protective layer that can last for decades and stop it corroding. It is widely used in items such as bridges, outdoor signs and car bodywork.<\/p>\n

The company is understood to have met Blair McDougall, the minister for industry, two weeks ago, and laid out the scale of the problem facing Llanwern.<\/p>\n

Russell Codling, the commercial director of Tata Steel, said: \u201cOur world-class Zodiac galvanising line in Llanwern, south Wales, is already being significantly impacted by the new quotas, and that situation just isn\u2019t sustainable.<\/p>\n

\u201cThe quotas have the power to turn this around and make us a truly sustainable business.\u201d<\/p>\n

Tata is in the process of switching from its old blast furnaces<\/a> in Port Talbot, south Wales, to a 3m tonne electric arc furnace. The move will reduce its carbon emissions but it cost 2,000 jobs in the region<\/a> when the blast furnace was closed down in 2024.<\/p>\n

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The process involves \u00a31.25bn in investment, about \u00a3500m of which has come from a government grant. But a steel industry source said prolonged tariff pressure<\/a> could even endanger that switch.<\/p>\n

The person said: \u201cIf there is a prolonged impact across a number of Tata Steel\u2019s core sectors that affects the outputs of its downstream processing sites, that in itself could have a knock-on effect on the ability of its electric arc furnace and green steel making to transform the future of the business as they were hoping.\u201d<\/p>\n

Alasdair McDiarmid, the assistant general secretary at the Community union, said: \u201cThere is no doubt that the increase in duty-free steel imports from China and Vietnam poses a threat to our domestic steel industry, and at Llanwern our members are already feeling the impact.<\/p>\n

\u201cWe will continue to call on the government to adopt a more robust approach to ensure that the long-term sustainability of Llanwern steelworks is not jeopardised.<\/p>\n

\u201cLlanwern is a crucial strategic site for the Welsh and UK steel sectors, supplying top-quality galvanised steel to the automotive and construction sectors. It is vital that the plant and its dedicated workforce have security for the future.\u201d<\/p>\n

The government has previously said it will review the quota system before it changes again in July 2027.<\/p>\n

A government spokesperson said: \u201cOur steel measure aims to strike the right balance between protecting domestic production and maintaining a secure supply, and final quotas were shaped by extensive engagement with industry.<\/p>\n

\u201cWhile category 4 imports are currently below the quota levels that have been set, we will continue to take industry feedback into account, monitor the impact closely and review the measure after 12 months.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"At Tata Steel\u2019s factory in Llanwern, south Wales, production lines that should be running full-time are now falling…\n","protected":false},"author":2,"featured_media":593427,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-593426","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=593426"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/593426\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/593427"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=593426"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=593426"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=593426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}