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Tata’s Llanwern steelworks runs at half capacity amid tariff quota shifts
A 50% UK tariff introduced in July aimed to curb cheap imports, but higher tariff free quotas for some countries have left production lines at about half capacity.
Guardian Business reports that Tata Steel’s Llanwern galvanised steel plant in south Wales is running at about half capacity, with production lines sitting idle for parts of the day and workers redeployed to maintenance and cleaning because of a shortage of orders.
The outlet says the company links the slowdown to a surge of cheaper steel imports from Asian countries, arguing the shifts in trade rules intended to protect UK producers are worsening competitiveness for galvanised steel.
Guardian Business notes that new 50% import tariffs introduced in July were meant to shield UK sites from imports from countries including China and India, but for galvanised steel the situation has deteriorated after the government increased tariff free quotas for certain exporters.
The report adds that India’s galvanised steel allowance rose from 98,000 to 125,000 tonnes, Vietnam’s more than tripled from 51,000 to 174,000 tonnes, and South Korea received a higher quota of 100,000 tonnes, with the plant producing about 600,000 tonnes of galvanised steel a year, nearly half of UK demand.