Gateshead Union Electric Steel announces potential closure
A steel company has announced it could close its only UK plant, putting about 180 jobs at risk.Union Electric Steel has launched a consultation on ending production at its site in Gateshead, which has been making steel for more than 150 years.Bosses said the business had been losing money for the past three years, due to lack of demand for products manufactured in the UK, high energy costs and the ongoing effects of Brexit.Will Garrett, managing director at Union Electric Steel, said the proposal was at "a very early stage" and "may not go ahead".
As part of the consultation, Union Electric Steel said it was engaging with unions and staff to explore all options.The factory was originally for the Davy Roll Company before it was acquired in 1999 by Union Electric Steel.
Mr Garrett said the firm had an order book for 2025 and would "continue to operate as usual" throughout the consultation period.He said the "proposal is at a very early stage, and depending on the outcome of these investigations, may not go ahead".The plant would not close before 31 December, he added.MP for Gateshead Central and Whickham Mark Ferguson has urged the company to "think again" and "do the right thing" by the staff."I urge the bosses at Union Electric Steel to meet with us as a matter of urgency to explore every possible avenue, to prevent a decision that would be bad for Gateshead and bad for British steelmaking," he said.North East Mayor Kim McGuinness said the announcement was "incredibly disappointing, not least when the American owners say it has an order book until the end of the year".Ferguson and McGuinness both said they would meet with the managing director at the factory and unions in the next few days."Starting today we shall explore every option to find a new future for Union Electric Steel in the North East and for every person who works there," McGuinness added.
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