Liberty Steel UK has confirmed a restructuring of its Stocksbridge High Value Manufacturing plant that will spell 162 job losses, though investment at its Rotherham Greensteel facility will create nearly as many roles.
The manufacturer - which recently staved off a winding up petition threatening thousands of jobs - said it was seeking either an outright sale or partnership for its special alloys business which supplies to the aerospace and energy sectors.
Liberty said the restructuring of its special alloys business would involve consultation with employees and unions and would include 162 redundancies at its Stocksbridge plant along with 45 at its Performance Steels business in West Bromwich.
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At the same time, investment in Liberty's Greensteel operation at Rotherham - part of an ambition to grow it into a two million tonne per year recycling facility feeding other parts of the business - would create up to 161 jobs.
A statement from the firm said it would try to minimise redundancies by transferring employees to comparable roles at the Rotherham plant.
Jeffrey Kabel, chief transformation officer at Liberty Steel Group said: “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.
"It sets a strong platform for Liberty's Greensteel expansion in which we will increase recycling of steel scrap in low carbon electric arc furnaces to meet growing demand in infrastructure and construction.”
Canaccord Genuity Limited was appointed by Liberty Steel Group as its financial adviser to assist in the sale of LSUK’s special alloys businesses.
