Liberty Steel: 120 jobs at risk as Scunthorpe plant faces mothballing

The Liberty Steel works in Scunthorpe produces flat steel sections used in shipbuilding and car making

More than 120 jobs are at risk as a steel plant faces closure.

Liberty Steel has begun a consultation process to mothball its Scunthorpe Liberty Merchant Bar (LMB) plant.

The factory produces flat steel sections used in shipbuilding and car making and the firm said high energy costs had affected the plant's financial viability.

Alun Davies from the union Community said the news "represents a blow for steelmaking in Scunthorpe".

A 45-day consultation process has started with union representatives over the 127 employees, according to the Local Democracy Reporting Service (LDRS).

Liberty Steel's chief transformation officer, Jeffrey Kabel, said: "Over the last two years Liberty has restructured and refocused its UK operations so they can operate viably and we have explored every option to achieve the same at Liberty Merchant Bar.

"A range of external factors have prevented this, including the high energy costs all UK steel producers face, and the loss of third party gas supply to our furnaces.

"As a result, we have opened a consultation on the proposed mothballing of the plant.

"During the process we will continue to support colleagues, as we have done throughout the past two years, and will make every effort to retain critical skills and redeploy staff where possible."

'Skills and experience'

Mr Davies, Community's National Officer for Steel, called on the government to "take action to reduce sky-high industrial electricity costs which leave our steel producers paying over twice as much as leading European competitors".

"Workers in Scunthorpe have been loyal, and the company has benefitted hugely from their skills and experience," he said.

"It is clear that this announcement has not emerged in a vacuum, and the company themselves have outlined how Merchant Bar has been forced to compete against imports from overseas producers who operate under more favourable business conditions, particularly when it comes to energy costs.

He added: "Our priority now is to ensure that there are no compulsory redundancies on site at Merchant Bar in Scunthorpe. The consultation ahead must be a meaningful one which provides unions with an opportunity to scrutinise the company's plans in detail.

"We will of course do everything we can to support our members at this difficult time."