Stocksbridge Steelworks Up For Sale - Hundreds Of Jobs At Risk

[The Joker 10]

From the Sheffield Star

 

https://www.thestar.co.uk/business/hundreds-of-jobs-at-risk-as-liberty-steel-puts-stocksbridge-steelworks-up-for-sale-3248010

Hundreds of jobs at risk as Liberty Steel puts Stocksbridge steelworks up for sale

Crisis-torn Liberty Steel is set to sell off its Stocksbridge works in bombshell news for the town.

The firm said the 750-strong aerospace and special alloys steel business was ‘not core to the Greensteel vision’.

The narrow strip mill at Brinsworth in Rotherham will also be put up for sale.

A formal process ‘will be launched shortly’, it added.

 

Bosses said they planned to focus on developing the Rotherham plant, including its electric arc furnaces.

Liberty Steel was plunged into crisis after the collapse of lender Greensill earlier this year.

The firm, which employs 1,600 in Stocksbridge and Rotherham and has 11 sites in the UK, owes Greensill ‘many billions’.

Stocksbridge, which has 165-year history of steelmaking, was also hit by a downturn in aerospace due to the pandemic. Most workers were put on furlough on March 12 to save money.

 

The announcement comes as Liberty Steel Group said it had made progress on refinancing and restructuring in the UK and Australia.

Executive chairman Sanjeev Gupta said they were in advanced discussions on a formal standstill agreement on Liberty Primary Metals Australia until refinancing was completed that would repay Credit Suisse Asset Management in full.

A spokesman said: “This work includes identifying a positive solution which will allow Liberty to complete the restructuring and refinancing of its UK operations, protecting thousands of jobs and supporting the fulfilment of its vision to be a leader in the decarbonisation of the UK steel industry.

 

‘As part of this restructuring Liberty will look to sell its aerospace and special alloys steel business in Stocksbridge, which while being a unique, high quality business servicing marquee customers in aerospace, auto and other highly engineered applications, is not core to the Greensteel vision of Liberty.

 

‘This sale will allow Liberty to focus on developing its Rotherham plant including its electric arc furnaces into a competitive 2 million tonnes recycled Greensteel plant, one of the largest in Europe.

‘The plant will make use of some of the millions of tons of steel scrap currently exported by the UK to make more of the quality steel needed in the UK, which is currently being imported.’

 

 

Clearly, this is not good news for Stocksbridge or South Yorkshire, due to the knock-on effect of large companies closing that also support smaller companies and businesses in the area.

 

The MP for Stocksbridge MP has called on the government to support the town’s steel business until a buyer can be found:

 

https://www.thestar.co.uk/business/tory-mp-calls-on-government-to-support-stocksbridge-steel-business-until-buyer-is-found-3248020

“This morning I have been informed that Stockbridge Speciality Steels is to be put up for sale by the Liberty Steel Group.

“Following the recent financial difficulties of the GFG Alliance, which owns Liberty Steel, Liberty owners have been negotiating with creditors to try to re-finance the business.

“Liberty have reached an agreement with their main creditors, but this involves the sale of Stocksbridge, Brinsworth, and West Bromwich plants.

“This is clearly an anxious time for steelmakers in Stocksbridge, their families, and our community, and I will be available to talk to steelworkers and union reps at the plant this week.

“I believe passionately that there is a strong future for steelmaking in Stocksbridge, and I will do everything I can to work with the Government and Liberty to find the right buyer.

“I have today written to Secretary of State for Business Kwasi Kwarteng, urging him to intervene to help find a suitable buyer for the site. I have also asked that the Government consider providing financial assistance if necessary to make sure that steelmaking can continue until a buyer is found.

“Stocksbridge Speciality Steels has unique capabilities that are of strategic importance to the whole of the UK. As the local Member of Parliament I will continue to make the case to Government to secure the future of UK steel.”

 

 

But the Business Secretary has not made any commitment to the steelworks yet:

 

https://www.thestar.co.uk/business/business-secretary-stops-short-of-offering-to-fund-sheffield-steelworks-until-buyer-is-found-3249151

 

Kwasi Kwarteng said he was monitoring developments closely and stood ready to support employees.  But he did not commit to keep the 760-strong site open

Mr Kwarteng said: “While I cautiously welcome progress being made to secure the future of Liberty Steel’s site in Rotherham, significant uncertainty remains for workers at those sites up for sale.

“I am monitoring developments closely and remain in regular contact with Liberty and the trade unions.

“As Business Secretary, delivering a strong and sustainable steel sector is an absolute priority.

“There is a future for steel-making in the UK, and I remain committed to supporting the sector's low carbon transition to protect high-quality jobs.

“As always, we stand ready to support Liberty Steel's dedicated employees and their families affected by any developments. I'll be meeting the company, trade unions and local MPs over the coming days.”

 

After many of the local steelworks closed in the 1980s, Sheffielders could still boast that we were providing specialist steels used in aerospace, but it seems a lack of air travel due to COVID restrictions could mean the end of that.

 

[geared 318]

Wasn't the Stocksbridge plant one of the decent ones?

 

Newport got loads of money ploughed into it to reopen and modernise, Stocksbridge was always ticking along just fine.

[Resident 1,193]

I suspect the serious fraud investigations in the LS's owner may have a lot to bear on this:

Independant Newspaper
 

The business empire of Liberty Steel owner Sanjeev Gupta is under investigation over suspected fraudulent trading and money laundering.
 

The Serious Fraud Office (SFO) said it was probing suspected fraudulent trading and money laundering at companies within the Gupta Family Group Alliance (GFG).


Investigators will also look at his financing arrangements with the failed finance company Greensill Capital – in the spotlight over David Cameron’s lobbying activities.


“The SFO is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the GFG, including its financing arrangements with Greensill Capital,” the SFO said in a statement on Friday.


Mr Gupta’s companies were among the main clients of Greensill before it collapsed in March this year. GFG’s reliance on Greensill caused many to worry that it might be at risk following the finance firm’s demise.

Edited May 26, 2021 by Resident

[spilldig 189]

Don't see why the business secretary should make any comment. Unless they say they want to re-nationalise it, It is a private enterprise.

[Jeffrey Shaw 90]

Let's see who's interested in buying it.

[Mr Allen 0]

Big shame that, the Steelworks employed generations of guys in Stocksbridge, from the great Grandads right through to the great Grandkids.

 

 

[butlers 261]

Central Gov.  owe us one for not providing Forgemasters with a loan in the coalition government days

 

[geared 318]

19 hours ago, butlers said:

Central Gov.  owe us one for not providing Forgemasters with a loan in the coalition government days

 

Aye, buy you wouldn't want them providing a loan to the current owner, proper slippery devil.

[spilldig 189]

19 hours ago, butlers said:

Central Gov.  owe us one for not providing Forgemasters with a loan in the coalition government days

 

Same as in post number 4.

[Resident 1,193]

41 minutes ago, geared said:

Aye, buy you wouldn't want them providing a loan to the current owner, proper slippery devil.

But that's probably why they will