7 Steel UK is calling for greater support to secure the long-term future of steelmaking in Wales.
The firm said that, with the right support, Wales could lead the way on the transition to electric arc furnace (EAF) production.
It says the move to low-carbon steelmaking, backed by EAF technology, represents a “significant evolution of the industry”. 7 Steel UK said it is a “thriving example of the potential of EAF production”, with 1.2 million tonnes of steel produced in Cardiff every year.
But the industry continues to face significant challenges, the firm added, from the impact of global overcapacity through to uncompetitive energy prices. Significant levels of investment will be required to ensure the adoption of new technology and unlock a new skills era, 7 Steel UK says.
It says that the Welsh Government has an important role to play in shaping the future of steelmaking through skills and education, and it has set out its five priorities for the next Welsh Government:
1. Nurture specialist skills
The domestic talent pool is facing a gradual erosion of specialist technical knowledge when it comes to steel, largely due to declining demand and commercial pressures facing further and higher education. As a result, steelmakers are increasingly reliant on overseas talent.
To build for the future, we need to nurture the next generation of talent here. While private firms can protect physical production aspects, Government must step in to protect the intellectual factor with specialist training pathways that are aligned with industry needs.
2. Steel School: establish a dedicated training centre in Wales
The firm believes there is a strong case for a dedicated Steel School, located in Cardiff. This facility would become the central hub for technical training, skills development and knowledge transfer, supporting the upskilling of existing professionals alongside new entrants to the industry.
To be viable for the long-term, a Steel School would require full public funding. And the benefits would be far reaching, strengthening the talent pipeline, reducing reliance on overseas recruitment and supporting innovation and best practice across the sector.
3. Harness the potential of advanced manufacturing
Right across the manufacturing sector, advanced technologies – like robotics, automation and digitalisation – are being rapidly adopted. While the adoption of Electric Arc Furnace technology is accelerating across the industry, steelmaking is by its very nature, more traditional.
This makes it more difficult to attract talent, leading to a growing gap in knowledge and expertise. Support is required to recruit into the steel industry – something which can be achieved through conveying the importance and long-term resilience of the industry in the UK.
4. Reform apprenticeships
Apprenticeships are a primary route into engineering, and across Wales, there are clear opportunities to improve their structure and delivery. Currently, feedback from learners suggests there is too much focus on Essential Skills Wales, resulting in elements of the programme that feel tokenistic.
To strengthen this route into the steelmaking industry, more focus is needed on role-specific, practical skills, preparing the next generation for the realities of modern industrial environments. Pairing this with clear progression pathways will create a shift and ensure apprenticeships nurture a strong talent pool for the industry.
5. Create greater clarity across the training system
Today, the funded training landscape remains largely unclear, the firm says. While there is a significant reliance on individual training providers to guide steelmakers, this can create inconsistency, add unnecessary complexity, and result in skills over-generalisation within the system.
By improving transparency and accessibility, businesses can plan their workforce development more effectively and ensure that funding is aligned with strategic industry needs. Strengthening the training system would unlock immediate potential for both employers and learners alike.
