July 23, 2007
EU PUTS FOUNDRIES AT RISK
Tens of thousands of jobs in Britain's foundries are under serious threat from proposed EU anti-dumping rules.
The measures, expected to be put forward this week, involve introducing a swingeing 36.1% import duty on ferro-silicon.
The European Union only produces 30% of its own needs with the remainder coming from countries such as Russia, China and Egypt.
It is consequently feared EU production of castings - which depends on the material - will become uncompetitive, with huge job losses.
Responding to the industry's urgent concern about the situation, John Whittaker, UK Independence Party MEP, has written a complaint to Peter Mandelson, the EU trade Commissioner.
"I was contacted by A & S Metallurgical Resources Ltd." said Dr Whittaker, the party's economics spokesman.
"They are very concerned that any duty increase on ferro-silicon will affect not only their trading and manufacturing business but also the wider iron foundry industry.
"The iron and steel foundry business in this country is struggling to survive and this totally unnecessary duty could lead to its demise.
"The imposition of duty will increase the cost of castings and consequently the consumer prices of a large number of finished products," he said.
Throughout the European Union there are about 1,000 people involved in producing ferro silicon - in Sweden, Poland, Spain and Bosnia - but there are 260,000 people working in the castings industry, of which about 40,000 are in the UK.
The substance is essential for the production of iron castings which are used in a wide range of products including engine blocks, washing machines, brake discs and lawn mowers.
"This is typical of the lack of joined-up thinking that we find in the EU. In trying to save 1000 jobs in one industry, Mr Mandelson is prepared to lose 260,000 in another. It's no wonder Britain's manufacturing base continues to shrink." said Dr Whittaker.
Ian Copestake, joint managing director of A & S Metallurgical Resources Ltd, based in Derbyshire, said, "The EU is supposed to take into account the broader interest of the whole community before making a decision.
"By the time they have realised they have made a mistake it may be too late and 40,000 jobs could have gone in this country. They are just sleepwalking into disaster."
ends
Note to editors: For further info contact Lynda Roughley - 07845
333764 or Dr Whittaker on 077526 43946