Liberty Steel Crisis Breeds Massive Job Cuts in the UK

SEATTLE (Scrap Monster): The future of Liberty Steel Company hangs in balance as it has finally decided to sell three of its UK steelmaking plants. The company employs nearly 3,000 workers at its UK plants, whose future looks uncertain.

The company, once described as a saviour of British steelmaking industry, fell into trouble after the collapse of its primary lender Greensill Capital. The company was also accused of failing to repay a loan amounting £18-million to Metro Bank. Also, the UK's Serious Fraud Office had recently opened an investigation against parent company GFG, alleging fraudulent trading and money laundering. Under these circumstances, the UK government turned down Liberty’s request for a £170-million bailout package to save itself from the current financial crunch.

Sanjeev Gupta, founder of Liberty House Group had earlier assured that none of its 12 sites in the UK will close. However, he has been forced to sell three of them in northern and central England. This puts approximately 1,500 jobs at risk.

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Meantime, Clive Royston, representative of the Community trade union at Liberty's Stocksbridge site in northern England urged the company to be a responsible seller and find a buyer who will not just strip off assets.