Liberty Steel UK debts put 1,450 jobs at risk

A SOUTH YORKSHIRE steelworks operated by international manufacturer Liberty Steel is at risk of closure, putting 1,450 jobs in jeopardy as the company struggles to repay its debts.

Liberty Steel, the UK’s third-largest steel producer, has amassed debts of up to £619m (US$831m), borrowed to fund its subsidiary, Speciality Steel UK (SSUK).

Steel production in the UK has slowed dramatically, with data from the International Steel Statistics Bureau (ISSB) showing that crude steel production fell 29% in 2024 to 4m t, with overseas imports surging by 25.8% to 6.2m t. The ISSB says the drop is due to the transition to electric arc (EAF) steelmaking, and intense competition from oversees.

The slowdown has led to production issues across UK steel businesses, most recently culminating in the nationalisation of British Steel’s Scunthorpe plant, which employs 2,700 people.

SSUK trouble

SSUK operates several sites in the UK – Scunthorpe, Rotherham, Hartlepool, Newport and Dalzell – and supplies steel materials to a range of industries and companies, including Rolls-Royce and Airbus.

Its plants in Rotherham and Dalzell, however, have not produced any steel since July due to a lack of funds to buy vital materials, according to a report from The Guardian.

Liberty Steel is owned by energy conglomerate GFG Alliance, which is also facing financial pressure –particularly in Australia, where its Whyalla Steelworks operation in Adelaide was recently placed into administration due to similar debt issues.

One of Liberty Steel’s creditors, Harsco Metals Group, has filed a petition to place the UK business into liquidation to recover its debt. The court case has been adjourned until July.