South Yorkshire mayor issues statement as fears for future of Liberty Speciality Steel grow
South Yorkshire’s mayor has issued a statement as fears for the future of Liberty Speciality Steel grow.
A recovery plan was ditched by the firm this week, the day before it was due to be decided in court.
Bosses at the firm - which employs 1,500 in Rotherham and Stocksbridge - announced they would “quickly consider alternative options,” after withdrawing a plan they had been working on for six months.
In a note to workers, Liberty Steel's chief transformation officer Jeffrey Kabel said they had been seeking court approval to reduce liabilities to creditors since November.
He added: “We will update you further next week on our progress regarding the options we are pursuing. We remain committed to working with all stakeholders, including unions, to find a solution in the best interests of all Speciality Steels colleagues.”
The company operates two electric arc furnaces in Rotherham, producing specialty and engineering steel, as well as high value-added products in Stockbridge, particularly for the aerospace sector.
In March, The Star reported that Speciality Steel UK had debts of £618m, according to court documents.
The business owes £289m to lender Greensill Capital, £288m to sister companies, £23m to unsecured creditors, £10m to another lender and £7.7m in tax to HMRC.
The sum was laid out in a High Court judgement which authorised meetings with creditors to avoid “immediate liquidation.”
South Yorkshire’s Mayor, Oliver Coppard, has responded to the growing concerns about the future of the firm.
He said: “The news emerging about Liberty Steel is deeply concerning for all of us in South Yorkshire, but particularly those who work in their plants at Rotherham and in Stockbridge. I spoke with the Business Secretary yesterday (Thursday) to raise our concerns and we agreed to work together as more details emerge and the situation develops.
“Our steel industry has been integral to our identity and economy for generations. While the challenges we face are significant, I'm committed to working alongside industry leaders, unions, and government partners to explore all possible avenues to safeguard jobs, support our steel sector and ensure that South Yorkshire remains at the forefront of advanced manufacturing.”