Hundreds of workers at Sheffield steel firm face redundancy, with bosses blaming political uncertainty and Brexit for falling demand

Liberty Speciality Steels has launched a 45-day consultation period as it seeks to cut costs. Workers are being briefed this morning and the unions have been informed.

Some 250 are at risk in Stocksbridge with a further 33 in Rotherham: 17 at Aldwarke and 16 at Brinsworth.

Bosses say they have been hit by falling demand in the UK and Europe due to ‘political uncertainty and issues around Brexit’.

The Stocksbridge site employs 950 and is home to the High Value Manufacturing division which supplies the aerospace, oil and gas and general engineering markets.

Managing director John Schofield said he was announcing the consultation with a “heavy heart.”

He added: “It’s a very difficult time for employees and families. Liberty under executive chairman Sanjeev Gupta is a responsible employer and takes employee welfare very seriously.

“Market conditions are very cyclical and we are experiencing weak demand and weak pricing.”

Mr Schofield said they would try to limit the number of compulsory redundancies.

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He added: “We are confident a significant proportion will be volunteers.”

Liberty owner GFG Alliance has an internal agency to help staff transfer within the business. The firm’s only other site locally is in Rotherham.

Mr Schofield said Speciality Steels had suffered two years of decline. Aerospace, about half of income, was “booming.” But oil and gas and engineering were down year-on-year.

No equipment will be mothballed and suppliers of the business will not be affected by the announcement, he added.

Speciality Steels was looking at investing in new products and markets, including superalloys and metal powders, in a shift upmarket.

But higher value products were sold in lower volumes.

Mr Schofield added: “It was a very difficult decision to make. But pricing and demand are soft, particularly in Europe and I can’t see that changing in the short to medium term.”

Previous redundancies were in 2016, under previous owner Tata, and in 2009.

Liberty is also consulting on up to 75 redundancies in South Wales.