Commenting on restructuring plans at Liberty Steel UK, Director General of UK Steel, Gareth Stace, said:
“Today’s restructuring announcement from Liberty Steel highlights the significant challenges UK steel companies face navigating the current harsh market conditions. There will naturally be concern regarding the 440 jobs potentially impacted, but this is unfortunately an ongoing risk that accompanies a persistently uncompetitive business environment here in the UK, further exacerbated by global supply chain difficulties.
“High energy prices have played an important role in the decisions announced today, with long-standing uncompetitive electricity prices having constrained UK investment and steel production for some time. This highlights again the need for government to fully address the UK’s structurally high industrial energy prices, looking beyond the important announcements made regarding the Energy Bills Discount Scheme earlier this week. It is crucial we also now see the development of a long-term decarbonisation plan for the sector, ultimately ensuring that the UK can be seen as an attractive place to invest in steel production.”
ENDS.
Notes:
About UK Steel: UK Steel is the trade association for the UK steel industry. It represents all the country’s steelmakers and most of downstream steel processors.
The UK Steel sector:
- Produces 7.2Mt of crude steel a year, around 70% of the UK’s annual requirement (annual demand of 10.5Mt)
- Employs 34,500 people directly in the UK and supports a further 43,000 in supply chains
- The median steel sector salary is £37,629, 45% higher than the UK national median and 59% higher than the regional median in Wales, and Yorkshire & Humberside, where its jobs are concentrated
- Directly contributes £2.4 billion to UK GDP and supports a further £3.1 billion
- Directly contributes £2.4 billion to the UK’s balance of trade
- 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again