Welsh steel to account for half of UK production under new government strategy
Tata Steel’s Shotton works in Deeside has been named in a new UK-wide Steel Strategy published today, as the UK Government unveiled plans to protect domestic steel production and cut imports.
The strategy, launched at Tata Steel’s Port Talbot plant by Business and Trade Secretary Peter Kyle, sets a target for 50% of steel used in Britain to be made in Britain, up from around 30% currently.
Welsh steel is expected to account for around half of future UK steelmaking under the plans.
From 1 July 2026, overall steel import quotas will be reduced by 60% compared with current arrangements, with steel coming in above those levels subject to a 50% tariff.
The UK Government said the National Wealth Fund would provide up to £2.5 billion of financing for the steel sector during this Parliament, on top of £500 million already committed to Port Talbot’s transition to electric arc furnace steelmaking.
Shotton, which employs around 700 people and produces metallic coated and pre-finished steel for the construction industry, is listed in both the UK Government announcement and a written statement from First Minister Eluned Morgan as a site that will benefit from the strategy.
The site is a downstream processing plant, meaning it coats and finishes steel rather than making it from raw materials, with most of its steel supply historically coming from Port Talbot in South Wales.
The Welsh Government’s written statement explicitly committed to supporting “Tata Steel’s downstream plants at Llanwern, Shotton, Trostre and Catnic” alongside Port Talbot and 7 Steel in Cardiff.
Eluned Morgan said Wales was expected to account for around half of the UK’s steelmaking capacity and described the new trade measures as providing “much needed clarity for the sector.”
The strategy also confirmed electric arc furnaces as the future of British steelmaking, continuing the shift from blast furnaces.
Construction of a new electric arc furnace at Port Talbot began in July last year and is expected to be commissioned by the end of the decade.
Welsh Secretary Jo Stevens said: “Welsh steel is expected to account for half of future UK steelmaking. It is not only a vital part of the South Wales economy, but also a crucial part of the UK’s industrial strategy, infrastructure capabilities and national security.”
The strategy also includes commitments to allow offshore wind developers to include steel manufacturers in the next round of Clean Industry Bonus applications, and to launch a cross-government working group to secure scrap metal supply for UK steelmakers.
The UK Government said a new deal backed by UK Export Finance, worth £70 million, had also been agreed for British Steel to supply the redevelopment of two Nigerian trading ports.
Tata Steel and Jack Sargeant MS, who represents Alyn and Deeside, were asked to respond to the strategy’s implications for the Shotton site.
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