Liberty Steel has it it moving forward with the next phase of its “restructuring” programme – which will include converting the Newport site into a storage, “distribution and trading hub”, and could affect up to 440 jobs.
The firm has operations in Newport and Tredegar, with more across the UK.
In a joint statement, Newport East’s MP and MS, Jessica Morden and John Griffiths, said the news was “incredibly hard on the dedicated workforce at Liberty Steel, and their families”.
“We will be working with the trade unions that represent staff to pursue options available to the workforce at this very difficult time,” the pair said.
Ms Morden said: “While Liberty has clearly had its issues as a company, today’s news again draws attention to the urgent need for a long-term plan for the steel industry – something which we just haven’t seen from the UK Government.
“I will be raising this at the earliest possible opportunity with UK government ministers.”
Mr Griffiths said: “The Welsh Government economy minister Vaughan Gething is very focused on these points and we know he has made them to his UK counterparts at previous meetings of the UK Steel Council.”
Steel, they said, is “at the heart of communities like ours in Newport East and should also be placed at the centre of a forward-looking, green industrial strategy”.
Welsh Liberal Democrat leader Jane Dodds said the news was “extremely concerning”.
“While I welcome moves by Liberty to minimise any job losses, many will be concerned about the future of not only this site but the production of steel and associated products in Wales as a whole,” she said.
“One of the primary challenges that the steel industry is facing is high energy costs, something which the Conservatives have utterly failed to confront or prepare for in the past.
“Domestic steel production and associated products such as Hot Rolled Coil (HRC) are vital to our national security, we need to see the UK Government take a much more hands-on approach to protect employment in the industry.”
Stephen Kinnock, Labour MP for Aberavon and chair of the All Party Parliamentary Group on Steel, said: “We all simply must wake up to the importance of the steel industry and its workers.
“The world will use more steel in the decades ahead than we do today, and in the age of Putin’s invasion and China’s aggression we desperately need steelmaking capacity here in Britain.”
He added: “Today’s news is a stark illustration of the cost of the UK Government sitting on its hands and doing nothing.”
Plaid Cymru’s MSs for South Wales East, Delyth Jewell and Peredur Owen Griffiths, said: “Welsh steel workers have already sacrificed a lot to support the industry through turbulent recent times, but did this on the understanding that accepting changes would safeguard their jobs.
“It is completely unacceptable that this seems to have been an empty promise.
“I would urge the Welsh Government to intervene immediately on behalf of the local workers by meeting with Liberty to discuss ways redundancies can be avoided, and demand that the UK Government help the industry navigate the economic chaos created by years of Tory failures by shelving plans to reduce the support available for businesses with their energy bills.”
A Welsh Government spokesperson said: “We are deeply concerned by Liberty Steel’s announcement regarding their facilities in Tredegar and Newport.
“We remain committed to a successful, low carbon future for Welsh steel.
“However, achieving this goal requires urgent action and grip from the UK Government. That’s why we have repeatedly called on UK Ministers to urgently bring forward a package of support to secure steel-making in Wales.
“The steel industry – and its highly skilled, dedicated workforce – is a crucial cornerstone to our economy and its future is essential to our prosperity and security.
“We will stand up for steel – and steelworkers – in Wales.”
Additional reporting by Alan Jones, PA Industrial Correspondent
