The British military and technological company BAE Systems, recently granted the contract to build the Royal Navy's new generation of Type 26 Frigates, now finds itself under some pressure to use only British Steel, in the production.
British Steel, already struggling to compete with cheaper foreign steel producers, particularly the cheaper Chinese imports, has seen a steady decline facing the industry in rent years and to win the order to provide the steel for these ships can only be seen as a vital lifeline.
It appears the contract to supply the steel has not been finalized, although a French supplier is said to be the leading contender. The warship contract, set to safeguard a number of skilled jobs for the coming decades, could have a similar impact upon steelworker' livelihoods. The Government at the time, promised British Steel Companies would be able to compete upon a "level playing field" for the contract, also that steel orders would not go abroad if the most competitive price was British. Yet it is extremely difficult for any British company to compete with many other suppliers and the British Government, also needs to take into consideration the welfare of steel workers and the state of the British Steel industry as a whole.
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