Problems could halt engineering companies

Spiraling steel prices and supply problems could force Irish engineering companies to halt production later this year, industry insiders warned.

Steel prices have already climbed by up to 40% this year with further increases of 20% forecast for later on.

Exacerbating the problem was the current dispute between the EU and the US on trade tariffs.

Both have combined to the rising input costs of engineering firms, according to IBEC's Irish Engineering Enterprises Federation (IEEF).

IEEF's director Paul Kelly said today: "Steel is the primary raw material for large parts of the engineering sector.

"Price increases are only part of the equation. It has reached the stage where many companies are experiencing supply problems.

"There are late deliveries, suppliers' reluctance to enter into long term supply contracts and an unwillingness to guarantee supplies.

"Already, uncertainty of supply is causing engineering companies production planning difficulties and forcing them to hold larger stocks of materials," Kelly added.