Liberty Steel: Hundreds of jobs at risk in Newport, Tredegar and Rotherham

Opposition MPs have criticised the announcement calling on the government to act to protect British steel jobs Credit: PA

The UK's third largest steel manufacturer has put 440 jobs under threat as part of a "restructuring" programme.

Steelworkers in Newport, Tredegar, Rotherham and West Bromwich are expected to be affected.

Liberty Steel announced its plans amid "unviable" market conditions, citing "high energy costs" and "imports from countries without the same environmental standards" as major challenges.

The company has faced increasing financial pressure since the collapse of its biggest lender Greensill Capital in 2021.

Liberty Steel said it will offer an alternative to redundancy through a programme which aims to retain, redeploy and reskill affected workers.

Around 150 jobs are thought to be affected in Wales, according to the union.

The company added it aims to find a “viable way forward” for the business and help safeguard jobs in its wider workforce of 1,900 permanent employees, and up to 5,000 including contractors.

The company has faced increasing financial pressure since the collapse of its biggest lender in 2021 Credit: PA

Although it said the measures are "expected to regrettably impact the roles of some of our workforce," workers will be offered redployment within the company "when market conditions allow".

Jeffrey Kabel, chief transformation officer for Liberty Steel Group, said the company remains "committed to the workforce here in the UK."

“We remain committed to our longer-term growth plans in the UK including our plan to grow Rotherham into a two million-tonne green steel hub.“Liberty’s shareholder Sanjeev Gupta has supported the business through a very difficult period and remains committed to the workforce here in the UK and ensuring our lower carbon operations help deliver a sustainable, decarbonised UK steel industry.”

But Alun Davies, national officer of steelworkers union Community, described it as a "body blow" to the company's "loyal workforce".

"This announcement is a body blow to Liberty Steel’s loyal UK workforce, who couldn’t have done more to get the company through an exceptionally challenging period.

“Since the collapse of Greensill Capital, the trade unions have supported the company because we believed that delivering the company’s business plans, which were audited and backed by the unions’ independent experts, was the best route to safeguard jobs and the future of all the businesses.

Stephen Kinnock called on a "green steel deal" between the government and the industry

“However, the plans we reviewed were based on substantial investment and ramping up production, including at Liberty Steel Newport, and did not include the ‘idling’ of any sites.

“The consultation on these proposals must be meaningful and the unions will be scrutinising the detail of plans to idle Newport, West Bromwich and Tredegar, including Liberty’s commitment to restart the plants when conditions allow."

Stephen Kinnock, Labour MP for Aberavon and chair of the All Party Parliamentary Group on Steel, said, "We simply cannot afford to offshore good jobs, our national security and carbon emissions to dirtier steel plants abroad, often controlled by authoritarian regimes that wish Britain harm."

“We need a green steel deal between government and industry – with action on Britain’s uncompetitive electricity prices – and we need it now. Today’s news is a stark illustration of the cost of the UK Government sitting on its hands and doing nothing.”

Sarah Champion, Labour MP for Rotherham, described workers there as being "abandoned to their fate". She added she was "furious" by the news.

“I am sickened and beyond angry that a decade of failure from the Conservative government on steel has led us to the point where 185 Rotherham and Sheffield steel workers face losing their livelihoods.

“Rotherham steel workers have been abandoned to their fate by a Government that has never understood the importance of our steel industry or made any effort to develop its enormous potential.

“There are simple steps the Government could have taken to prevent this; buy British steel for Government projects, provide competitive energy costs and address punitive business rates.“

The Prime Minister’s official spokesman said reports of potential job losses at the firm were “concerning” but that ministers would continue to offer “extensive support” to the sector.

“Obviously it will be concerning for workers at Liberty Steel. We are committed to ensuring a sustainable future for the UK steel sector. We want to work closely with the industry to achieve this,” the spokesman said.

“Alongside that we will continue to provide extensive support to the sector.”

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