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Infrastructure projects should use more UK steel, says trade body

Much of the steel for government contracts comes from overseas despite decline of British industry
The government “talks a good game” on supporting steelmakers but should set targets for the use of British steel in big infrastructure projects, the industry trade body has said.
As the financial turmoil threatening 5,000 jobs at Liberty Steel reignited concern about the sector, UK Steel said ministers had failed to come up with practical action to arrest the decline of an industry that has lurched from crisis to crisis in recent years.
The trade body urged the government to respond by ensuring that as much as possible of the 5m tonnes of steel needed for infrastructure projects including HS2, offshore windfarms and the Hinkley Point C nuclear power plant comes from the UK.
Government disclosures show that much of the steel for taxpayer-funded initiatives is being supplied by plants overseas. Among the projects not using UK steel is the construction by BAE Systems of Dreadnought-class submarines, which will carry the Trident nuclear deterrent from the 2030s. Because the steel needed is not made in the UK, BAE has had to go abroad for producers.
While some speciality steel grades aren’t made by UK producers, the government has recently launched a taskforce to look at ways of breathing new life into the ailing sector, including by ensuring procurement boosts domestic firms.
UK Steel welcomed the move but said there was “a distance to go before we are close to matching the prime minister’s rhetoric to direct procurement opportunities to UK steel producers”.
“Government ministers have consistently talked a good game on public procurement of steel, but to date this hasn’t translated into much practical action or solid commitments,” said the director general of UK Steel, Gareth Stace.
He called for policies that prioritise UK-sourced steel, as well as targets for the British steel content of projects such as HS2.
Procurement decisions were “almost entirely” outsourced to private contractors, he said, with no direction on the government’s objectives, such as benefit to the UK steel sector and wider economy.
“Choices are made simply on the basis of lowest upfront cost, with little or no transparency,” he said.
“Often where UK steel has been used it has been through chance rather than design.”
Labour’s shadow minister for business and consumers, Lucy Powell, who has called for a “Buy British” steel procurement policy, said the government had missed many opportunities to give UK steelmaking a boost.
“The government must strengthen infrastructure contracts and learn the lessons of past failures by ensuring that domestic steelmaking and the communities which rely on it have the chance to benefit,” she said.
Government data for 2018-19 only show the origin of about 20% of steel used in public projects, UK Steel said.
The government said it is working to improve this and said the amount of steel procured from UK producers had doubled.
About 5m tonnes of steel is needed over the next decade for projects including HS2, offshore windfarms and the decommissioning of nuclear power plants.
Hinkley Point C, the UK’s first new nuclear plant for more than 20 years, has recently announced a contract with Express Reinforcements, of Neath, south Wales, for 230,000 tonnes of Welsh steel in a contract worth more than £120m.
But construction firms, including private contractors on HS2, are bound by procurement rules that offer little scope for giving preference to UK suppliers.
David Bailey, a professor of business economics at the University of Birmingham, said reducing energy costs and business rates were key to supporting steel. But he pointed out that the government has long wielded the power to direct business to UK suppliers without breaking EU state aid rules, even before Brexit.
“You don’t have to just specify lowest cost; you can build in other things as well, as long as they’re applied equally to every bidder,” he said.
“The government has a procurement lever to specify the steel. If you revise the procurement rules, you can influence that.”
Calls for action to help UK steelmakers come with Liberty Steel engulfed in a financial crisis due to the collapse of its lender, Greensill Capital.
The government has turned down pleas for a £170m bailout loan but the business secretary, Kwasi Kwarteng, speaking on BBC Radio 4’s Today programme on Tuesday, said all options were on the table.
source: Rob Davies
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- March 27, 2025
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During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
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Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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