Engineering news
Heavy engineering firm Sheffield Forgemasters is to cut up to 100 jobs because of the fall in oil and steel prices.
The company, also cited high UK energy costs and fierce international competition as key factors in the decision to make the redundancies.
Management has begun a period of consultation for the voluntary redundancies, retirements and relocations across all its division in order to make the cuts.
This job cuts were announced as Sheffield Forgemasters reported a loss of £9.4 million in its accounts for the 18 months ended 31 December 2014, the first time the firm has reported a loss since a management buy out in 2005. It blamed the loss on reduced activity in the oil and gas sector, the slowing down of growth in the global economy reducing orders for its engineering products and an international collapse in steel prices.
Dr Graham Honeyman, chief executive of Sheffield Forgemasters, said: “It is unfortunate that we have had to announce redundancy plans, but these are to preserve the majority of jobs here in Sheffield and are very much viewed as a short-term necessity.
“Under normal trading conditions, we can compete with our global competitors, but when the circumstances we face are so adverse, despite being a fiercely independent company, we have felt compelled, along with others in our sector, to have to canvass action from government to look at ways they might take urgent measures to regularise the competitive and market environment for UK manufacturers.”
He added that although there had been “some positive response” about electricity costs for major industrial users “more remains to be done.”
The news comes just days after Tata Steel UK said it is to cut 1,050 jobs, mainly at its Port Talbot-based Strip Products business. The company also made hundreds of job cuts last year in other parts of its business.
Gareth Stace, director of UK Steel, said: “Sheffield Forgemasters is at the forefront of cutting edge design and engineering, and is a global leader in supplying critical components into the nuclear market around the world.
“These significant job losses 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.
“Furthermore, it is deeply concerning that the new nuclear site, planned at Hinkley Point will not be mandated to use British steel. Government cannot afford to let up on ensuring that all major procurement projects, from nuclear sites to tidal barrages and airports, all use British steel.”