180 jobs at risk as firm consults on factory future

An engineering firm has warned jobs could be axed as it battles “unsustainable” financial losses.

Union Electric Steel UK Limited has opened talks with unions and staff on the future of its 180-job Gateshead plant.

Bosses say they are “exploring all possible options” for the base following years of struggles caused by Brexit, lower demand and high energy costs and inflation.

Reacting to the news, North East mayor Kim McGuinness has called on the company “to do the right thing and save the jobs of everyone employed”, revealing she will meet factory and union officials in the coming days to “find a new future for every person who works there”.

The firm, which makes cast rolls for the steel and metal industries from the ex-Davy Roll Company factory at the foot of the Gateshead Highway flyover, says it has been forced to act due to “unsustainable” losses over a number of years.

Will Garrett, Union Electric Steel UK Limited managing director, said: “This is an incredibly difficult situation, and we fully recognise the impact closure would have on our team in Gateshead.  

“Our priority during this consultation period is to support staff, provide guidance and fully investigate all other possible options.  

“This proposal is at a very early stage, and depending on the outcome of these investigations, may not go ahead.

“We still have an order book for 2025, and we will continue to operate as usual throughout this consultation period.  

“If the proposal is implemented, we consider it would not take effect before December 31, 2025.

“We are working closely with all internal and external stakeholders throughout this process, and we remain committed to treating our people with fairness and courtesy.”

Confirming she will sit down with company bosses, unions and Gateshead Central and Whickham MP Mark Ferguson in the coming days to thrash out potential blueprints for the plant's future, mayor McGuinness said: “There is no time to be lost.

“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.

“This announcement is incredibly disappointing, not least when the American owners say it has an order book until the end of the year.  

“This is a huge blow and a very worrying time for the 180 employees at the factory, many of whom have given their entire careers to Union Electric Steel and before that Davy Roll.

“They are a skilled and dedicated workforce, and we will stand by them and explore every option for the future.”

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