‘Best news in years’ as Liberty abandons plans to sell huge Sheffield steelworks

Staff and union bosses welcomed the announcement after almost two years in limbo. It follows a recovery in aerospace and Liberty’s financial fortunes after the collapse of lender Greensill. The plant, which employs 700, and a narrow strip mill at Brinsworth, Rotherham, were put up for sale in May 2021. Now bosses say they want to ‘ramp up’ production of their speciality steel.

Doug Patterson, of the Unite union, said: “It appears the financing is on a sound footing and the trajectory is upwards. It probably ties in with growth in the markets for oil, gas and aerospace. It is the best news for years, although the cost of electricity remains a problem and there is no certainty about government support. They were supposed to be announcing an extension of support in January.”

The decision comes amid soaring energy prices which have seen Liberty cut back on production elsewhere. Last week, the firm announced plans to cut 440 jobs nationally - including 185 in Rotherham - due to challenging market conditions. The firm said it was cutting ‘unviable’ production of steel in Rotherham and replacing it with cheaper, less environmentally-friendly imports as an ‘interim measure to mitigate the impact of uncompetitive energy costs’. A plant in West Bromich will be idled and one in Newport will be turned into a distribution centre.

Previously, the firm was keen to grow production of these 'commodity grade' products, including steel used in construction and infrastructure, using Rotherham’s ‘lower carbon' electric arc furnaces. Bosses have said they will restart production when market conditions allow, aiming to grow Rotherham into a 2m tonnes-a-year ‘green steel facility’.

Jeffrey Kabel, chief transformation officer for LIBERTY Steel Group, said the firm had put £200m into the business over the last two years but cuts were still necessary. The announcement sparked fury from local MP Sarah Champion, who blamed government policies.

Last year, Liberty also faced the threat of closure from HMRC in a ‘winding up’ process - an application to court to close down a company - over unpaid debts believed to be £25m.

It was lifted a month later. Stocksbridge has a 167-year history of steelmaking.