Steel crisis: Up to 100 jobs at risk at Sheffield Forgemasters

Sheffield Forgemasters has started consultations on 100 redundancies, just days after Tata cut 1,050 jobs mainly at Port Talbot in south Wales.

The company said reduced activity in the traditional oil and gas sector, the slowing down of growth in the global economy and an international collapse in steel prices had adversely affected its results for 2014.

The Sheffield company said caution expressed in its 2013 financial results had proved well founded, as it experienced a tougher global business environment.

Joel Hills: Sheffield boss blames government's 'lack of will'

Forgemasters also cited acute pricing pressures from international competitors combined with high UK energy costs as key factors.

A statement said:

The announcement was made as it published accounts for the 18 months to December 2014, which showed a loss for the first time since a management buyout in 2005 of £9.4 million.

Sheffield Forgemasters chairman Tony Pedder said:

Commentating on today’s announcement by Sheffield Forgemasters, Gareth Stace, Director of UK Steel, said:

Mr Stace continued: “Furthermore, it is deeply concerning that the new nuclear site, planned at Hinkley Point will not be mandated to use British steel.

"Government cannot afford to let up on ensuring that all major procurement projects, from nuclear sites to tidal barrages and airports, all use British steel.

"The Government’s review of business rates could significantly reduce the multi million pound bill plants have to pay and this action must take place now, before further jobs are lost."