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British majors turn away from foreign steel firms
00:00 02 Feb 1995
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Top contractors are to boycott continental steelwork contractors in
response to late deliveries and specification problems, according
to UK steel lobbyists.
The boycott coincides with news this week that steel fabricators in Wales are refusing a surprise invitation to assist Spanish contractor Ensidesa on Balfour Beatty's œ60 million Second Severn Crossing approach road scheme.
The British Constructional Steelwork Association director Derek Tordoff confirmed the boycott. 'I understand that several main contractors have recently decided not to use foreign steelwork contractors due to concerns regarding their ability to meet deadlines and to perform to specification requirements,' he said.
Most contractors would not comment on the boycott. But they have been lobbying against the use of subsidised continental steel since 1993. At that time Balfour Beatty awarded a œ4.5 million contract for 6000t of steel to Ensidesa in a deal that angered the UK steel industry.
But now, in the middle of the contract, Balfour Beatty has changed its procurement plan and asked British steel fabricators near the Severn site to provide 800t of steel.
Balfour Beatty is attempting to persuade them to work under subcontract to Ensidesa, which usually uses Spanish fabricators. The British steelwork contractors have so far refused.
'They will only consider a standalone contract. They don't see why they should bail out Balfour Beatty now the pigeons have come home to roost,' said an industry source. 'And that's the feeling among all British steel contractors.'
The œ700,000 contract is to supply 800t of steel span ready for painting in three batches - 320t by April, 200t by June, and the rest by August.
Balfour Beatty was unavailable for comment on the move.
The row over foreign steel has blown up again just as the Government has decided to ask the European Commission to investigate the legality of state subsidies to the Italian and Spanish steel industries.
DTI minister Tim Eggar told Tordoff that the Government is to refer the matter of Italian and Spanish state subsidies to the European Commission for investigation.
'We are firmly opposed to the payment of illegal state aid which has enabled some Spanish and Italian steel fabricators to price unfairly,' said Eggar.
n The DoT has agreed to make QA certification for steel firms compulsory in its new specification. Details are being finalised.
The boycott coincides with news this week that steel fabricators in Wales are refusing a surprise invitation to assist Spanish contractor Ensidesa on Balfour Beatty's œ60 million Second Severn Crossing approach road scheme.
The British Constructional Steelwork Association director Derek Tordoff confirmed the boycott. 'I understand that several main contractors have recently decided not to use foreign steelwork contractors due to concerns regarding their ability to meet deadlines and to perform to specification requirements,' he said.
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Most contractors would not comment on the boycott. But they have been lobbying against the use of subsidised continental steel since 1993. At that time Balfour Beatty awarded a œ4.5 million contract for 6000t of steel to Ensidesa in a deal that angered the UK steel industry.
But now, in the middle of the contract, Balfour Beatty has changed its procurement plan and asked British steel fabricators near the Severn site to provide 800t of steel.
Balfour Beatty is attempting to persuade them to work under subcontract to Ensidesa, which usually uses Spanish fabricators. The British steelwork contractors have so far refused.
'They will only consider a standalone contract. They don't see why they should bail out Balfour Beatty now the pigeons have come home to roost,' said an industry source. 'And that's the feeling among all British steel contractors.'
The œ700,000 contract is to supply 800t of steel span ready for painting in three batches - 320t by April, 200t by June, and the rest by August.
Balfour Beatty was unavailable for comment on the move.
The row over foreign steel has blown up again just as the Government has decided to ask the European Commission to investigate the legality of state subsidies to the Italian and Spanish steel industries.
DTI minister Tim Eggar told Tordoff that the Government is to refer the matter of Italian and Spanish state subsidies to the European Commission for investigation.
'We are firmly opposed to the payment of illegal state aid which has enabled some Spanish and Italian steel fabricators to price unfairly,' said Eggar.
n The DoT has agreed to make QA certification for steel firms compulsory in its new specification. Details are being finalised.
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