Sheffield Forgemasters to cut 100 jobs as steel industry decline continues

The UK’s declining steel industry has just took another huge blow as 100 jobs are set to be cut at Sheffield Forgemasters.

The firm has confirmed that the redundancies are a due to a significant decrease in activity in the oil and gas sector, lower steel prices from international competitors and the increase in UK energy costs.

These factors caused Sheffield Forgemasters, founded in 1805, to report its first ever loss since a management buyout in 2005 of £9.4m, for the 18 months to the end of 2014.

Tony Pedder, Sheffield Forgemasters chairman, said: “The storm clouds which seem to gather periodically over the steel and steel-related sectors are once again evident.

“Of particular concern has been reduced activity in the traditional oil and gas sector, with oil prices down to a level that is deferring much potential new investment.

“We have been working with our major customers, suppliers and in particular, our secured lender, with whom we have concluded an extension to our financing facility. This will provide adequate funding for the business through to the end of March 2017.”

Gareth Stace, Director of UK Steel, added: “Sheffield Forgemasters is at the forefront of cutting edge design and engineering, and is a global leader in supplying critical components to the nuclear market around the world.

“These significant job losses for the company highlight that there isn’t an area of steel that is off limits to the mix of extreme pressures the sector is facing.

“Government continues to claim that manufacturing is the back bone of the UK economy and it must therefore act to ensure no further highly skilled jobs are lost.”