Liberty Steel cuts UK workforce

The Liberty Steel Group reviewed its UK business in response to challenging market conditions and the continuing decline in demand for UK steel products. In light of this, the company has decided to reduce the headcount at certain factories to meet sustainable production forecasts. The Group has reaffirmed its commitment to the UK market and sees opportunities to thrive through its own steel production, investment in new metal technologies and the application of its GREENSTEEL strategy. However, Liberty concluded that it was necessary to reduce its workforce in South Yorkshire and South Wales to ensure long-term viability and competitiveness in these locations. If consulted with trade unions, this could lead to a reduction of 355 jobs.

The reductions will take place in Stokesbridge, Rotherham, Brinsworth and Newport.

Liberty Steel UK CEO Cornelius Lowrens said “Liberty has made huge strides in improving the productivity of the steel mills it has acquired over the past six years. We have re-launched the setup plants and demonstrated our willingness to invest in the UK. The steel industry in the UK is facing difficult conditions and we have made the difficult decision to cut labor in several locations to make them sustainable over time. We intend and will always avoid forced dismissals. Therefore, the creation of GFG Workforce Solutions now offers alternative solutions that have impacted the security of permanent employment. Our commitment to these steel mills and our ambition for the future of this business is stronger than ever.

The group creates a new company, GFG Workforce Solutions, which will allow workers to remain in the GFG Alliance. Those affected will be offered either voluntary dismissal or a position in this flexible new business. Workforce Solutions members will be available for deployment at GFG facilities, the GFG Foundation, or through local recruiting agencies that will complement the existing skills of the individuals.

Liberty's South Yorkshire plant produces specialty steel products for use in vehicles, aircraft, industrial machinery and equipment for the oil and gas industry.

In Rotherham, the company has two electric arc furnaces with a total design steel production capacity of 1.2 million tonnes per year.

The company has two special steel sheet rolling lines at Brinsworth and Stockbridge.

The Newport plant was previously a gated site acquired by Liberty in 2013, which was