Business leaders warn of impacts of British Steel collapse

As well as the short-term threat to thousands of jobs, they fear the country will end up losing the ability to manufacture its own steel and become reliant on overseas producers.

It comes after the firm officially fell into receivership after talks with the Government failed to secure its future.

Workers at the company's plants now face weeks of uncertainty as efforts are made to rescue the business.

Wolverhampton Metal Centre in Qualcast Road, Horseley Fields, is British Steel's most central distribution site. It services a 100-mile radius including Bristol and Wales.

Christopher Greenough, commercial director at Shrewsbury-based pressings specialist Salop Design, said: "Again we see that the lack of investment in UK steel has led it to become uncompetitive in a very much productivity focused sector.

"However, the real issue is not the short-term effect it will have if is closes the doors, but what long-term effect it will have. We will end up losing the ability to manufacture steel in this country and will be reliant on overseas producers to set the tonnage and prices that we can have.

Projects

"To get the economy kick started, we need to manufacture goods, and to do this we need to have a supply chain that is UK based, and UK controlled."

There are also fears about the impacts British Steel's collapse will have on the supply chain.

Julian Kirkham, director at SWG Construction, based in Welshpool, which undertakes a wide range of projects in the Shropshire and Mid Wales area, said the news was concerning but would not immediately affect any of their projects.

He said: "Any major company at the top of the supply chain going into administration is bad news, and is likely to have an impact on the construction industry at some level.

"We work with a variety of suppliers, so don't foresee any particular issues on any projects we are currently undertaking in Shropshire and Mid Wales, but will be watching the situation closely."