Capital Coated Steel responds to UK steel policy changes while expanding capability, sustainability and growth
The steel industry was already navigating trade measures, environmental requirements and regulatory changes before the latest wave of policy shifts arrived. New UK import quotas and the upcoming Carbon Border Adjustment Mechanism (CBAM) add further considerations for manufacturers, distributors and customers. These changes are driving many to reassess sourcing strategies, supply chain resilience and long-term purchasing decisions.
As quotas, tariffs, carbon reporting requirements, and sustainability targets become increasingly intertwined, purchasing decisions are no longer based solely on specification, availability and price. Customers are looking for partners that can help them understand risk, maintain security of supply, and navigate a more complex operating environment. Capital Coated Steel (Capital) stands at the center of those conversations.
Founded in 1972 and still family-owned, Capital has an operational capacity in excess of 40,000 metric tons each year, supplying pre-finished steel to customers across construction, manufacturing and engineering markets. Its position as the UK’s only Tata Steel Colorcoat® accredited distributor places it close to both steel production and end-use applications. This provides Commercial Director Jonathan Wilson and Manufacturing Director Simon Nurse with a unique perspective on market developments, sourcing challenges and customer priorities.
The current environment highlights the market’s increasing complexity. Steel buyers now weigh regulations, carbon impacts, product availability and trade policy in addition to traditional factors like specification and cost. “The headlines are really about the quotas, which are the volume of specific types of steel that can be imported without a tariff. In some cases, that quota has been cut by two-thirds and the penalty for exceeding the allocation is now 50 percent tariff. Not all steel is the same and when it comes to pre-finished steel, you’re talking about a specialized product. Not every manufacturer can produce it,” Jonathan explains.
Jonathan’s perspective comes from a career in the steel industry. Having spent nearly two decades upstream at Corus and Tata Steel responsible for pre-finished steel, he then moved into the world of building integrated photovoltaics, before moving back to the steel industry downstream at Capital.
Having worked at both ends of the supply chain, Jonathan brings a perspective that combines steel manufacturing expertise with an understanding of customer requirements. Instead of simply filling orders, Capital works to understand how and why customers specify certain materials. “We’re trying to de-risk their supply chains by highlighting the factors that sit behind purchasing decisions, from trade measures and fire ratings to product suitability and environmental requirements. At the same time, we’re working to move the market toward alignment with the Tata Steel UK supply chain,” he notes.
Alongside quota reforms, CBAM is becoming a major industry focus. Starting in January 2027, businesses importing carbon-intensive products such as steel into the UK will face new reporting requirements and need to consider embedded carbon emissions. “People are still adjusting to the new quota regime. Before long, they’ll have to adapt to CBAM as well. Together, those changes will have a major impact on supply chains, influencing where businesses buy steel and how they evaluate it,” Jonathan observes. While customers prepare for the impending changes, Capital continues investing in its own operations and capabilities.
With 38 years at Capital, Simon has held roles across operations, manufacturing, logistics, systems, IT and sustainability. His experience, combined with postgraduate study including a master’s degree in environmental decision making, has helped shape an approach that balances manufacturing performance with environmental responsibility.
Sustainability sits at the core of operational and investment decisions. The company uses carbon accounting to track progress toward its goal of reaching net zero by 2045, while continuing to invest in renewable energy, fleet electrification, and operational efficiency. “Last year, our latest carbon accounts showed a 14 percent reduction from the previous year, so we’re moving in the right direction. We continually evaluate electricity use across our operations to improve efficiency,” Simon points out.
Capital holds partners to the same high sustainability standards, especially in transportation and logistics, where emissions go beyond the factory gate. “If we’re talking about haulage, for example, we want to know what our partners’ decarbonization plans look like,” he continues. “We understand how difficult decarbonization is in heavy goods transport, but we’re eager to work together to improve efficiency and lower the overall carbon cost of deliveries.”
Capital’s environmental efforts extend beyond reducing emissions. The company built a biodiversity garden and partnered with the Sirhowy Valley Bee Company and Project Nestbox to support local habitats. These initiatives helped Capital move from a bronze to a silver EcoVadis rating. “Recognition is a by-product, not the main goal,” reflects Simon.
“No one told us or mandated us to invest in over half a megawatt of solar, build the biodiversity garden, or undertake the various other initiatives we have,” adds Jonathan. “We did it because it’s the right and responsible thing to do. Getting a stamp of approval was a bonus, not the motivation.”
Alongside sustainability initiatives, Capital is investing in organic growth. One of the most significant developments has been the launch of Capital Cladding Systems, reflecting a broader move into the building envelope market.
Recent capital investments include a new 19-millimeter roll-forming line and upgraded leveling equipment to support production and quality. “Capital Cladding Systems covers everything in the building envelope market, including warranted built-up systems, composite panels, and ancillaries. It’s less of a new venture and more of a natural extension of our core business,” Jonathan reveals.
Technology is playing a bigger role at Capital as it prepares for evolving reporting requirements and seeks greater visibility across operations. “When it comes to AI, there’s a world of possibility and a world of hype,” notes Simon. “Amid those bold claims, great software tools are emerging, and we’re already putting them to work to help move the business forward, via manufacturing systems provided by Jonas Metals Software and extracting insights using Microsoft analytical tools.”
At Capital, technology is playing a growing role in quality management, particularly in applications where customers demand high surface-quality standards. Jonathan comments: “Some of our customers require such high surface quality that the human eye can miss tiny flaws. We’re using technology to catch those and flag any issues before they become problems.”
Through all these initiatives, supply chain resilience stays at the forefront. As regulations evolve, Capital sees expertise and preparation as key responsibilities. “Our top priority is making sure we have robust supply chains. We see ourselves as experts in pre-finished steel, and our customers ask us a lot about what they need to do for CBAM. It’s all about scenario planning,” Jonathan highlights.
Growth remains a priority for Capital, but Jonathan is less interested in taking market share from competitors and more focused on creating new opportunities within the sectors the company serves. Rather than defining growth purely by market share, he sees opportunities in expanding the use of pre-finished steel. “Some think business development means poaching customers from competitors. That’s not really growth; you haven’t made the pie any bigger. At Capital, we’ve always focused on expanding the size of the pre-finished steel pie, which benefits everyone,” Jonathan concludes.
As the steel sector adapts to new trade rules, carbon regulations and supply chain expectations, Capital is investing in capability, sustainability and technical expertise while helping customers navigate the changes ahead. Simon sums up the long-term goal: “I want Capital to be recognized as the leader in sustainable processes for pre-finished steel in the UK and Europe.”
