Liberty Steel plans to cut 162 jobs at Stocksbridge plant in Sheffield and create new roles in Rotherham

The proposed cuts, announced today, are part of the next steps in the firm’s restructuring and transformation plans, which also include an increase of up to 161 roles at its Rotherham plant.

The manufacturer has launched a consultation to restructure the Stocksbridge works and its downstream operations.

The company said it had taken the ‘strategic decision’ to grow and invest in its core GREENSTEEL operation at Rotherham to build it into a two million tonne per year recycling production facility feeding its downstream rolling mills producing both long and flat products.

As part of the transformation plans, it said it would also seek either an outright sale or partnership for its non-core special alloys business, which produces complex steels for demanding applications in industries such as aerospace and energy.

The firm 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.

It added: "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.”

The unions will not accept any hard redundacies

Responding to the announcement, Alun Davies, national officer for 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.”

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