After reviewing the UK business in response to the challenging market condition and lingering reduction in demand for steel products Sanjeev Gupta’s Liberty House has decided to cut 355 UK jobs across its steel making plants in Yorkshire and Wales as part of a cost-cutting drive. However, the group sees opportunities to prosper through home-grown manufacturing of steel products, investment in new metals technology and through the application of its GREENSTEEL strategy. The bulk of lay-offs, 280, will be at the Stocksbridge plant, which focuses on producing specialty steels.
Liberty Steel UK Chief Executive Officer Mr. Cornelius Louwrens said “Liberty has taken enormous strides in improving the performance of the steel mills it has acquired over the last six years. We’ve re-started mothballed plants and demonstrated a commitment to invest in the UK. Unfortunately, the steel industry in the UK is facing challenging conditions and we have made the difficult decision that there is a need to reduce the workforce at a handful of locations, in order to make them sustainable for the long-term. It has always been our intention, and always will be, to avoid compulsory redundancies. Therefore the creation of the GFG Workforce Solutions now offers those impacted the security of ongoing employment as an alternative. Our commitment to these steelworks, and our ambition for the future of this business, is as strong as ever.”
The group is planning to create a new company, GFG Workforce Solutions, to enable employees impacted to remain within the GFG Alliance. Those affected will be offered either voluntary redundancy or a position within the new business whereas participants in Workforce Solutions will be available for deployment within GFG businesses, the GFG Foundation or via local employment agencies.
European steelmakers have also been hit by a surge in imports of cheap steel and a hike in carbon allowance prices which has to be bought to offset emissions. Earlier in December last year, Tata Steel Europe announced plans to cut 3,000 jobs across its European operations, and 1,000 job cuts for the workers in the UK, as the company fights with unprecedented market conditions.
