Liberty Speciality Steel: Rotherham steelworkers furloughed as high energy prices halt production

Workers at a South Yorkshire steel plant have been operational for just four days in the last three months due to sky high energy prices, unions reps claim.

Liberty Speciality Steel’s bar mill at Thrybergh was in production for two days in August and two days in October, members of Unite said. Two more are lined up in December - a total of six days in five months.

The reps, who did not want to be named, said: “We can get the orders, but we have hardly rolled this year due to electricity prices. 

“Little areas of the Rotherham business are quite busy but on the whole we have produced much less than 50 per cent of what we could this year. The company has been really good and not laid any workers off. Some are on furlough and some are on cleaning and maintenance."

Liberty employs hundreds at a sprawling site in Rotherham which includes Aldwarke and Brinsworth strip mill. It also owns a plant in Stocksbridge which serves the aerospace sector and is busy, the reps said.

The Unite reps spoke to The Star at a Unite demonstration at Sheffield railway station to demand political support for the sector ahead of the next general election.

Claire Peden, Unite team leader, said the future of the entire industry was at stake.

She added: “This is a message to politicians seeking our votes. They must take action and speak out to protect our steel industry.”

The union wants procurement rules changed to ensure infrastructure projects use ‘100 per cent UK steel’. It says £1bn-a-year for the next 12 years is needed to transition to ‘green steel’ with no loss of jobs. And it wants the government to tackle energy prices with price caps and public ownership of the National Grid.

A LIBERTY Steel spokesperson confirmed the business was operating below capacity and said high energy prices were a "major drag".

“LIBERTY Steel UK (LSUK) has in recent months focused on high value production serving key customers in strategic defence, aerospace and energy supply chains. While this means LSUK is operating below capacity, our refocused operations are the right platform for its high-quality manufacturing businesses to withstand challenging market realities.

"During periods of intermittent operations at Thrybergh, and other plants, LSUK has maintained short-term working agreement to employees providing them with 85 per cent of their wages during downtime. We have also maintained flexible working arrangements, including redeployment and retraining to keep our staff engaged.

“High UK energy prices have long been a major drag on the country’s industrial competitiveness and while the Government has made some welcome policy changes, UK energy costs are still above competitors in continental Europe.

"Many UK steel producers, LIBERTY included, have been funding losses during the past decade to maintain operations and employment. With the current Bills Discount Scheme due to end in March, the Chancellor’s Autumn Statement on 22 November is an opportunity to confirm both that the ‘Supercharger’ elements for energy intensive industries will apply from April 2024 and that Government will go further in creating a competitive business environment for steel and other strategic industries.”