ASW boss in steel imports protest

THE chief executive of steelmaker ASW Holdings is protesting to the European Commission and the Government because he fears reinforcing steel bar imports from Turkey and eastern Europe will flood the Continent after America's imposition of a 30% tariff on steel products.

Last year Sheerness-based ASW exported 25,000 tons of wire rod used in building construction to the US and it expects to sell the same amount this year.

Graham Mackenzie said the main problem will be diverted exports that formerly went to the US from steel producers in eastern Europe and Turkey. These are likely to undermine ASW's export programme to the Continent. He is hoping that the European Commission will 'mitigate the risk'. If it does not, the rally in the group's progress which could lead to it becoming profitable in the current year may be endangered.

Mackenzie is also pursuing complaints with the European Commission and the Government about the £1m cost it suffers under the Climate Change Levy imposed last April. He believes the electric arc furnaces used in Sheerness and Cardiff should be exempt.

In the year to last December ASW cut losses to £6.4m from £11.7m in the previous period. The group was helped by a series of rationalisations following its acquisition of Sheerness and the withdrawal of its main competitor Alphasteel. Again there is no dividend.