Liberty Steel has not produced anything at two of its key UK plants since July, in a sign of the deep financial difficulties for Britain’s third-biggest steelmaker as it looks for rescue funding.
The plants at Rotherham in South Yorkshire and Motherwell in Scotland have not produced any steel for about nine months because of a lack of funds to buy vital materials, with staff on furlough on 85% of their salaries for the duration, according to workers who spoke to the Guardian.
Steel companies have been struggling for several years. UK steel production fell in 2024 to its lowest since the 1930s, and in the last month the government in effect took over the British Steel blast furnaces at Scunthorpe, amid fears of more than 2,700 job losses and the end of primary steel-making in the UK.
Liberty Steel’s UK plants are struggling to secure the funds required to operate due to financial instability, as one creditor moves to reclaim owed money through a winding-up petition filed in London’s High Court on Wednesday.
Speciality Steel UK (SSUK), a Liberty subsidiary at Rotherham, was granted until 16 July to hold discussions with potential investors, in a desperate effort to avoid a liquidation, risking 1,450 jobs. In case of the Rotherham plant, the Labour government would face pressure to step in as the plant is considered a vital part of British steel-making capabilities, which faced bankruptcy.