Liberty Steel UK proposes a reduction of 162 roles in Stocksbridge as it creates 161 jobs in Rotherham
In an update, Liberty Steel Group said it had created a new leadership structure to enhance its governance and simplify its operating model.
Jeffrey Stein, Chief Restructuring Officer, said: “The refinancing of our LIBERTY Steel USA business is further confirmation of rising confidence in our restructuring plan, our GREENSTEEL transformation strategy and the quality of our U.S. operations. The strength of our international asset base is supporting our efforts to stabilise, refocus and refinance our operations, which are gaining momentum.
He added: "At the same time, we are making significant progress in evolving our corporate governance structures, in line with our commitment to increase transparency and accountability. Our new structure will support more effective decision-making and robust systems and processes and position the group to thrive and generate quality jobs in the years to come.
"We’re also taking the necessary steps to close or divest non-core businesses. Businesses that are not viable due to changed market conditions have either been sold or closed.
"However, for high potential but non-core businesses such as our super alloys speciality steel division in the UK, we are restructuring them to make them leaner and more competitive, and also looking for new owners or partners for such businesses who will be specialized and focused shareholders creating sustainable value and preserving high quality jobs.”
Earlier this month Liberty Steel UK launched a consultation with its employees and unions to restructure its super alloys speciality steel division "to enhance their productivity and
competitiveness ahead of a possible sale or JV (joint venture).
The statement said: "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."
In a statement issued on April 8, Liberty Steel said: "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."