Liberty Steel announced plans to cut 200 jobs in the United Kingdom. They are cutting the jobs at their plants in South Yorkshire and West Midlands and are planning to shift the production at Rotherham. The increased production at Rotherham could potentially create 160 new jobs.
160 new jobs at Rotherham
The company said on Friday that it would cut 160 jobs at their plants in Stocksbridge, South Yorkshire. Moreover, Liberty Steel will cut another 45 jobs in West Bromwich in the West Midlands. However, the company has decided to increase the production at Rotherham will may add 160 new jobs. This means that many affected workers in Stocksbridge will have the option of moving to nearby plant in Rotherham. The company has also announced that it would minimize redundancies by transferring employees at the Rotherham plant.
“Liberty’s special alloys are unique, high potential businesses, and their quality products are prized by customers in strategic sectors such as aerospace and energy. The steps we’re announcing today will help ensure they are competitive in the future, with job creation at our Rotherham plant enabling us to mitigate a large percentage of role reductions at other sites.” Jeffrey Kabel, chief transformation officer at Liberty Steel Group said in a statement.
Woes for Liberty Steel
Liberty Steel and other parts of Gupta’s GFG Alliance metals businesses were under financial pressure for a year since the collapse of their main backer, Greensill Capital. Moreover, Liberty Steel’s UK operations were also threatened directly. In February HM Revenue and Customs filed winding up petitions against four companies employing 3,000 workers including those operating the Stocksbridge and West Bromwich sites, over unpaid tax. GFG has tried to restructure its complex web of UK operations and find new financiers to invest. However, it has not so far announced any significant external backers. Liberty steel is confident that this restructuring of the special alloys business will enhance their productivity.
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