The Manufacturer Podcast: Russia Investigated Over Cyber-attack | A Crisis for Chemicals and Steel?

What’s new with you, listener? In this episode of The Manufacturer Podcast, the big news of the year continues to be the cyber-attack on Jaguar Land Rover.

Key takeaways

Why would Russia target JLR? Perhaps for publicity? Why target a specific business?
Two important industrial industries, chemicals and steel, facing similar pressures over energy prices, tariffs and cheaper imports
Aston Martin’s Formula One team is still very much at the start of its AI journey.
Arla Foods is investing heavily into its site in Lockerbie because that is where it gets most of its milk supply from farmers

FAQs

Who carried out the JLR cyber-attack?
Why is the European Commission doubling tariffs on steel imports?
What three things does Sir Jim Ratcliffe want to see from European governments?
What is Aston Martin focusing on for next year’s Formula One season?
How much was invested into Arla Foods’ new cheddar facility?

Take a listen

While the JLR cyber-attack was discussed in our last episode, the recent development is around who carried out the attack, with a report from The Telegraph suggesting it could be Russia. This came after government insiders allegedly told the publication that the scale and sophistication of the incident suggests hackers may have been acting on behalf of a foreign state. The link to the Kremlin is now an active line of enquiry.

The somber mood continues as influential figures in chemicals and steel speak out about the “existential threat” facing both industries.

Sir Jim Ratcliffe, Founder and Chairman of chemical giants Ineos, has said that the moment of reckoning has finally arrived for Europe’s chemical industry. He believes the industry is at tipping point and only urgent action can save it.

Similarly, Britain’s steelmakers have warned they face “perhaps the biggest crisis” in their history after the European Commission proposed doubling tariffs on steel imports to 50 per cent. Gareth Stace, director-general of UK Steel, has urged ministers to act quickly.

We also hear about Molly’s trip to Silverstone where she spoke to Aston Martin’s Formula One team about preparations for next season. The team will be looking at lighter cars, slimmer tyres, electric engines and an improved suite of digital tools with the help of ServiceNow.

And find out what is going on at Arla Foods up in Lockerbie, where the company has marked 50 years of cheese-making at Lockerbie with a multi-year investment programme of more than £144 million.

Plenty for your ears to absorb, but if that wasn’t enough, Joe, clearly with a lot on his chest, gives us a flurry of entries for this week’s ‘Made by a Moron.’

Russian’ to conclusions?

Government insiders told the The Telegraph that the extent of the disruption, and the notable absence of ransom demands, pointed to the likely involvement of a state-backed actor rather than criminal groups seeking financial gain.

The investigation is being led by the National Cyber Security Centre (NCSC), part of GCHQ, with support from the National Crime Agency. Teams of cybersecurity experts were deployed to JLR to restore operations and trace the source of the breach.

Although the official government line, as you would expect, is urging people not to rush to conclusions, with a spokesperson saying: “The investigation is ongoing, and we would caution against speculation. The Government has persistently called out a range of actors for malicious cyber activities against the UK and will continue to do so.”

What has Sir Jim Ratcliffe said?

In a recent interview with The Times, as well as an interview conducted in-house which has been distributed across various outlets, Sir Jim couldn’t have been clearer. He believes that around half of Europe’s ethylene production capacity will close before 2030.

“We’re at the eleventh hour and there are three things that need to happen urgently,” he said.

“First, remove the green taxes and levies from energy costs. Second, scrap the carbon taxes. And third, give us some tariff protection. We need actions, not sympathetic words or there won’t be a much of a European chemical industry left to save.”

Steel feeling the heat

The European Commission insists the new safeguards are needed to protect European producers from a glut of cheap imports from China, Turkey and elsewhere. Industry chief Stéphane Séjourné pointed to the loss of 18,000 steel jobs in 2024, saying: “We have global overcapacity, unfair competition, state aid, and undercutting in prices — and we are reacting to that.”

Under the plan, any steel imported above the reduced quota would be subject to a 50% tariff, bringing EU levels in line with the United States, where President Donald Trump raised duties sharply earlier this year. The proposals, still requiring approval from EU governments and the European Parliament, are due to take effect early next year.