YORK-area companies could be hit hard by levies being imposed on steel imported into the U.S., an MP has warned.

But bosses at one of the firms today stressed there was "no immediate threat" to business or jobs.

Ryedale MP John Greenway spoke in the House of Commons on behalf of three North Yorkshire companies in the wake of the U.S. levy.

He said Portakabin and Portastor, in Huntington, York, and Wards Building Components, in Sherburn, Ryedale, could be hit by the levy.

He told trade secretary Patricia Hewitt the levy could force job losses at the firms. He warned that if the UK steel industry is badly effected by the levy, the companies would have difficulty getting hold of the top-grade steel they need.

But Andy Atkins, marketing manager at Portakabin, said business for the company was currently going well.

"We are in a strong position and have a strong order book with lots of business. At the moment, we can't see any short-term impact or immediate threat, but of course no one knows what the long-term impact is going to be."

President Bush announced on Tuesday that he was imposing the levy of between eight per cent and 30 per cent on imported steel - despite personal pleas from Prime Minister Tony Blair. The move is to protect the U.S. steel industry from cheaper, imported steel.

Ms Hewitt said she shared Mr Greenway's concerns about "destabilisation" of the steel market and condemned the U.S. move as a clear breach of World Trade organisation rules.

She is backing calls by the EU for immediate World Trade Organisation dispute settlement action.

No one from Portastor or Wards was available for comment.

Updated: 15:01 Friday, March 08, 2002