Steel plant fears US 'backwash'

BOSSES are concerned for the future of the Sheerness steel plant, as the industry hits an international crisis.

Graham Mackenzie, chief executive of ASW and Sheppey MP Derek Wyatt are both demanding urgent action from the government to stop a predicted surge in imports which would threaten the UK market.

Cardiff-based ASW employs about 300 staff at the steelworks in Brielle Way. As the country's only producer of reinforcing steel, the Sheerness plant is indirectly affected by new tariffs imposed on imports to the United States.

Mr Mackenzie said: "What we are concerned about, and this could potentially impact on Sheerness, is what I call the backwash effect. Once all the material from Eastern Europe, Russia, the Ukraine and the Far East is locked out of the States, it is going to be looking for a home and there is a real danger that a lot of it will come into the UK market.

"This will increase our competition and put a risk on the market. We are already having trouble with low cost imports." Mr Mackenzie is calling on the government to introduce safeguarding measures.

He said: "Fairly rapid action could be taken to stop a surge in imports, but we have difficulty getting the Department of Trade and Industry to take any sort of stance on it. We need measures to protect our market and jobs at Sheerness."

Mr Wyatt has called on Prime Minister Tony Blair to hold an emergency summit. He said: "US steel is in disarray. President Bush's decision will mean that European steel destined for the USA will now be dumped in the UK and severely affect our steel industry, especially ASW Sheerness. They are making profit, they have a full order book and are doing well at a difficult time."

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