Fastener manufacturers urged to prepare for power generation surge
If you are a supplier to the power generation industry in the UK, are you prepared for a possible sudden demand for raw materials in the light of National Grid seeking additional electricity supplies for this coming winter?
National Grid, which runs the power supply network for the UK has expressed concern that with several power stations closed or facing closure for various reasons, power generation capacity may be much tighter than expected for the end of 2014 and the start of 2015.
This year four nuclear power units have been shut down for safety reasons following routine inspections and with fires at coal-fired units at Ferrybridge and Ironbridge further reducing capacity, National Grid is now talking to power generators about bringing capacity back on-line sooner than expected. The UK was expected to experience a power squeeze in 2015/16 but this has now been brought forward to 2014/15.
This has led some in the supply chain to the power generation industry to ask whether outages will be brought forward and if this will bring about a sudden demand for raw materials?
“Due to the power squeeze on the UK’s power generation being brought forward a whole year following the unexpected problems with several plants, we may see pressure being applied to bring some plants on-line sooner than anticipated. This may lead to a sudden high demand for raw materials for fasteners, bars and plates which could in turn lead to shortages in supply, if you are a manufacturing supplier to power generators you would be well advised to speak to your suppliers now to make sure you are not caught out. We are already seeing an increase in enquiries for our Alloy T41 and are booking orders against our next delivery in early November 2014,” says Mark Burton, Managing Director of Broder Metals Group.
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