Eurozone crisis leaves UK Steel output at standstill

According to the data, output in 2012 was just 1% higher in 2012 than 2011. This equated to average production of 184,264 tonnes a week in 2012 compared to 182, 269 tonnes a week in 2011. This not only reflected continuing economic stagnation, said UK Steel, but, more specifically, reduced automotive production in Europe together with the low level of construction activity in the UK. UK Steel director Ian Rodgers said: "This virtual standstill position is despite the export-oriented plant in Teesside re-starting last spring under new ownership and leaves UK steel output still around 30% below 2008/9 levels." He added: "Two key factors are the continuing low level of UK construction output, which contributed to the closure of the Thamesteel plant last January and, more recently, the slowdown in European automotive production. Government needs to act more urgently in stimulating shovel ready investment in the UK's infrastructure and other construction activities. "The data also underline the need for an industrial strategy, with the whole of government pulling together to frame policies that encourage industrial growth and support UK manufacturing competitiveness."