Liberty Steel UK proposes a reduction of 162 roles in Stocksbridge as it creates 161 jobs in Rotherham

The company has also announced an increase of potentially up to 161 roles at its Rotherham plant.

In a statement, Liberty Steel, said: "In May 2021 LIBERTY Steel UK (LSUK) took the strategic decision to grow and invest in its core GREENSTEEL operation at Rotherham with an ambition to build it into a two million tonne per annum (mtpa) recycling production facility feeding its downstream rolling mills producing both long and flat products.

"At the same time LSUK announced it would seek either an outright sale or partnership for its non-core special alloys businesses (High Value Manufacturing, Narrow Strip, Performance

Steels and Powder Metals), which produce complex steels for demanding applications in industries such as aerospace and energy.

"This would allow a more focused and strategic ownership structure which would look to grow this important and valuable business serving marquee customers in aerospace, automotive and other highly engineered applications.

"Following a significant injection of shareholder funding and a number of successful targeted production campaigns, LSUK is today launching a consultation with its employees and unions to complete the restructuring of the special alloys businesses in order to enhance their productivity and competitiveness ahead of a possible sale or partnership.

"This is anticipated to result in a net reduction of approximately 50 roles after factoring in new and vacant roles at its nearby GREENSTEEL operation in Rotherham fuelled by new investment and volume growth.

"These reductions are proposed as 162 roles at the High Value Manufacturing Stocksbridge plant and 45 in the Performance Steels business in West Bromwich.

"At the same time, LSUK will invest in the ramp up of GREENSTEEL production, recycling steel scrap in high volumes into a full range of commercial steels that can meet growing infrastructure demand in the UK and abroad.

"This will require an increase of potentially up to 161 roles at the Rotherham plant, which with its two electric arc furnaces, remains the anchor plant for LSUK’s GREENSTEEL production.

"LSUK is confident that this restructuring will put these businesses on a sustainable footing giving them a strong commercial future in their target markets. LSUK has always sought to

minimise the impact of any changes in the business and foresees the potential to mitigate a large percentage of the role reductions by transferring employees to comparable roles at the Rotherham plant."

Jeffrey Kabel, Chief Transformation Officer, LIBERTY Steel Group said: “LIBERTY’s special alloys are unique, high potential businesses, and their quality products are prized by

customers in strategic sectors such as aerospace and energy.

"The steps we’re announcing today will help ensure they are competitive in the future, with job creation at our Rotherham plant enabling us to mitigate a large percentage of role reductions at other sites. It sets a strong platform for LIBERTY’s GREENSTEEL expansion in which we will increase recycling of steel scrap in low carbon electric arc furnaces to meet growing demand in infrastructure and construction.”

Alun Davies, National Officer for trade union Community, said: “The last year has been extremely difficult and we recognise change is required to secure the future of the businesses. For too long our members have been working under a cloud of uncertainty, and today’s announcement provides some much-needed clarity on the company’s intentions.

"Restructuring is always challenging, but the trade unions will engage constructively in the consultation process to safeguard the interests of the workforce. Under no circumstances will the unions accept any hard redundancies; every worker who wants a job must have one.

"The company’s plans to restructure the special alloys business were reviewed by the unions’ independent experts, who found them to be credible. However, if Liberty is to move forward with a sale of the business, the steel supply chain must be guaranteed and the unions fully consulted on all aspects of the process.”

Harish Patel, National Officer for Unite, said: “This has been an exceptionally stressful period for our members and their families, who expect Liberty to deliver on promises to refinance the businesses and protect jobs. Our members have done an incredible job to keep the businesses going and the company must repay their loyalty.

"The Government must also play their part by stepping up to support Liberty, and all British steelmakers, by acting to bring our unaffordable energy prices into line with EU competitors. Liberty Steel is a strategically important business and has a crucial role to play producing green steels for a low-carbon economy.”