Steel is a key material used in warehouse equipment as it is lightweight, strong and cost effective.
A warehouse equipment manufacturer needs a reliable steel supply to make racks, trolleys and other essential equipment. Steel is produced in many countries of the world, notably in many European nations, the USA and China.
Port Talbot in Wales has been importing coke to fuel steelmaking blast furnaces for fifty years. The harbour at Port Talbot is now closed as the coke is no longer needed by Tata, Britain’s largest steelmaker, which is replacing its blast furnaces with modern electric ones.
Electric furnaces are better for the environment as they are less polluting. Tata’s transition to electric furnaces is costing £1.2 billion, helped by a £500 million grant from the British government. This shows the commitment of the government to support the UK steel industry, but some industry experts are not sure whether this indicates that steelmaking in the UK has a long-term future.
A major criticism of electric furnaces is that they don’t produce the top-grade steel required by the automotive and some construction projects. However, if all blast furnaces close in the UK, this will help Britain achieve its net-zero carbon emission targets.
The British steel industry has been in decline over the last few decades, and the new Labour government wants to stop this decline. However, as things currently stand, there still remains enough steel production in the rest of the world to satisfy the requirements of warehouse equipment manufacturers.
Whether the government succeeds in its efforts or not, this shouldn’t spell absolute disaster for UK companies using steel on a daily basis.
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