News: Government intervention needed in "high stakes situation" at Liberty Steel
The leader of Rotherham Council has urged the government to step in to help save LIberty's steel operations in Rotherham.
With the threat of insolvency looming, Cllr. Chris Read said that a potential closure at Aldwarke would leave a "geographical hole at the heart of our borough."
Rothbiz reported earlier this month that the court case that could have led to Liberty's Speciality Steel business going into insolvency had been adjourned until July with discussions ongoing to keep the business going - including a potential sale.
In a letter to the business secretary, Cllr. Read has urged the government to take steps saying that a potential mothballing or liquidation of sites in Rotherham and Sheffield represents a significant threat.
The points include swift intervention to keep all strategic options open including the retention of the sites in a "warm idle" state and to consider the national interest case for preserving these assets under the Steel Industry (Special Measures) act 2025 if necessary.
The act was passed quickly to enable the government to step in to save British Steel in Scunthorpe.
Read described sale talks as a "high stakes situation which could move quickly at any point" and also wants to see a cross departmental working group established to explore future ownership or transition opportunities. Marie Tidball, MP for Penistone and Stocksbridge has called for Sanjeev Gupta and GFG Alliance, the owners of Liberty Steel, to step aside.
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Having dealt with a number of rounds of redundancies at the sites, the government is also being urged to prepare immediate support for workers and communities affected through rapid response funds and if necessary re-skilling resources.
The letter to Jonathan Reynolds, concludes: "Closure of the site would not only be a body blow for our local economy, it would leave a geographical hole at the heart of our borough, potentially requiring massive public investment over the long term to bring it back into productive use. The cost of inaction from the government now could well outweigh the cost of timely intervention to the public purse.
"We believe there remains a window of opportunity to preserve the skills, infrastructure, and capabilities embedded in Rotherham and Stocksbridge. With proactive leadership and support from government these sites could form the foundation of a cleaner more resilient steel sector in the UK.
"I am conscious you will be receiving representations from a number of local stakeholders, MPs and representatives in both Rotherham and Sheffield. Please be assured that we stand ready to work across agencies with you to find solutions that protect jobs support transition and secure our future industrial capacity."
Liberty Steel website
Images: Liberty Steel
With the threat of insolvency looming, Cllr. Chris Read said that a potential closure at Aldwarke would leave a "geographical hole at the heart of our borough."
Rothbiz reported earlier this month that the court case that could have led to Liberty's Speciality Steel business going into insolvency had been adjourned until July with discussions ongoing to keep the business going - including a potential sale.
In a letter to the business secretary, Cllr. Read has urged the government to take steps saying that a potential mothballing or liquidation of sites in Rotherham and Sheffield represents a significant threat.
The points include swift intervention to keep all strategic options open including the retention of the sites in a "warm idle" state and to consider the national interest case for preserving these assets under the Steel Industry (Special Measures) act 2025 if necessary.
The act was passed quickly to enable the government to step in to save British Steel in Scunthorpe.
Read described sale talks as a "high stakes situation which could move quickly at any point" and also wants to see a cross departmental working group established to explore future ownership or transition opportunities. Marie Tidball, MP for Penistone and Stocksbridge has called for Sanjeev Gupta and GFG Alliance, the owners of Liberty Steel, to step aside.
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Having dealt with a number of rounds of redundancies at the sites, the government is also being urged to prepare immediate support for workers and communities affected through rapid response funds and if necessary re-skilling resources.
The letter to Jonathan Reynolds, concludes: "Closure of the site would not only be a body blow for our local economy, it would leave a geographical hole at the heart of our borough, potentially requiring massive public investment over the long term to bring it back into productive use. The cost of inaction from the government now could well outweigh the cost of timely intervention to the public purse.
"We believe there remains a window of opportunity to preserve the skills, infrastructure, and capabilities embedded in Rotherham and Stocksbridge. With proactive leadership and support from government these sites could form the foundation of a cleaner more resilient steel sector in the UK.
"I am conscious you will be receiving representations from a number of local stakeholders, MPs and representatives in both Rotherham and Sheffield. Please be assured that we stand ready to work across agencies with you to find solutions that protect jobs support transition and secure our future industrial capacity."
Liberty Steel website
Images: Liberty Steel
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