Tata Steel's Llanwern factory in south Wales is currently operating at approximately half capacity, with production lines running partially empty. The company attributes this to a surge of cheap steel imports from Asian countries, which is threatening the viability of several UK sites and risking hundreds of jobs.
New 50% import tariffs introduced by the government in July were intended to protect UK producers from cheap steel. However, for products like the galvanised steel made at Llanwern, the situation has reportedly worsened after the government increased tariff-free quotas for some countries.
India's allowance for galvanised steel rose from 98,000 to 125,000 tonnes, while Vietnam's quota more than tripled from 51,000 to 174,000 tonnes. South Korea also received an increased quota of 100,000 tonnes. The larger quota for India is understood to have been a last-minute move to help secure a trade deal with the country.
Russell Codling, commercial director of Tata Steel, stated that the new quotas are significantly impacting their galvanising line in Llanwern and that the situation is not sustainable. The Community union's assistant general secretary, Alasdair McDiarmid, also highlighted the threat posed by increased duty-free steel imports to the domestic steel industry.