Nearly half of government procured steel is from the UK, newly released data shows

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New published data on UK Government procurement of steel shows that £158 million was procured by UK Government during 2017/18, of which it is confirmed that 43% (£68 million) was produced in the UK.

Commenting on the publication, UK Steel Director General, Gareth Stace, said:

“UK Government is the single biggest purchaser of steel, buying over three million tonnes of steel between now and the mid 2020’s. This tremendous purchasing power equips the Government with a hugely influential policy tool to deliver against a number of its objectives, including support of UK manufacturing sitting at the heart of the Industrial Strategy.

“The UK steel sector has worked hand in hand with government over the last three years to develop and improve public procurement practices in relation to steel, opening up opportunities for UK steel producers and improving transparency in procurement throughout government. We all know there is still much to progress on, but important and positive steps are being made.

“The publication of steel procurement compliance data and the new steel pipeline are prime examples of those positive steps and are both enormously welcome. The steel pipeline is crucial in assisting the industry in planning for future supply opportunities, whilst the compliance data is a vital benchmarking tool, detailing where the Government is buying its steel from and helping us understand progress against our objectives.

“At this time of significant change for the UK, we must seize the opportunity to boost and strengthen UK manufacturing and construction supply chains, maximising the economic value these can deliver for the UK economy. Steel, as a vital foundation sector, sits at the start of these supply chains; unlocking the potential here is vital to achieving our wider industrial objectives. We look forward to continuing to working with government to build on the data released this week.”N

NOTE:

·        The new data goes into some detail on which departments procure the most steel from the UK, and where that data is unknown. Also released is the new steel pipeline, indicating steel assumptions for upcoming major government works. Read the new steel compliance data and steel pipeline, here.

·        Central government departments, their executive agencies and non-departmental public bodies are required to comply with PPN 11/16 – Procuring steel in major projects

·        The Compliance Data publication details £158 million worth of steel procured by UK Government during 2017/18

·        Of this total sum, the origin is provided as UK for 43% (£68 million)

·        The origin is provided as outside of the UK for 42% (£67 million)

·        The origin is unknown for 14% (£22 million)

·        Where the origin of steel is known and provided, it is listed as UK for 50% (£68 million out of £135 million).

·        Origin details have been provided for Hinkley C, but not in terms of values and as such it has not been included in the statistics above.

*gskelton@eef.org.uk