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Ongoing steel crisis at Tata will not result in delays to projects, says BCSA

A leading steel organisation has reassured the industry about capacity constraints, as Tata Steel prepares to sell its UK plants.

The ongoing steel crisis at Tata will not result in delays to projects, according to the British Constructional Steelwork Association.

The BCSA said the UK structural steelwork sector would grow in volume terms by 4 per cent in 2016 and that there would not be constrained supply in the sector.

It cited a report from KPMG, which found that the UK’s constructional steelwork capacity lies between 1.14m and 1.34m tonnes against forecast demand for constructional steelwork of 1.05m tonnes in 2019.

A spokesman said: “BCSA and the UK constructional steelwork sector support UK Steel’s calls for a level playing field for UK steelmaking and the government’s new steel procurement requirements.

“A UK supply of high-quality steel creates a competitive and efficient market, and supports the UK economy.”

Tata Steel will begin the formal process to sell its UK plants by Monday, according to business secretary Sajid Javid.

Mr Javid was speaking in India where he had been meeting Tata chairman Cyrus Mistry.

The business secretary said there had been interest from a number of parties in acquiring Tata’s UK operations.

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