HUNDREDS of Teesside and Hartlepool steel jobs are under threat after a winding up order was filed against owners Liberty Steel.

Unions have raised fears that thousands of jobs are affected around the country after HMRC issued a winding up petition following the collapse of Greensill Capital – the main lender to GFG Alliance, which includes Liberty Steel.

The petition is part of discussions over repayments to creditors, which unions fear could force Liberty into insolvency.

Read more: £26m British Steel investment at Skinningrove

In the North East, the group operates Liberty Powder Metals, based at the Materials Processing Institute in Middlesbrough and a pipe manufacturing plant at Hartlepool.

A spokesperson for the Community, Unite and GMB unions said: “This action by HMRC threatens thousands of jobs and is a devastating blow to our members and their families.

“Liberty Steel is a strategically important business, crucial to delivering net zero, and under no circumstances can our plants be allowed to close.

“The trade unions call on GFG and HMRC to get back round the table and hammer out a deal that provides space for the company to refinance.

“The best route to protect jobs and repay HMRC and other creditors would be to enable the business to continue to trade.

“Our experts have advised us that with the right framework of support Liberty Steel can have a sustainable future.

“The Government has an important role to play in providing that framework and must take urgent action to address our unaffordable energy prices.

“GFG is the owner and we hold them accountable for their actions, but as we have always said, Government must be ready to step in should that be required.”

Tees Valley Mayor Ben Houchen said: “I’m disappointed to learn that Liberty Steel are under the threat of insolvency. My immediate thoughts and concerns are with the dedicated workforce and their families in Hartlepool who are potentially affected by this news.

“These are local people’s lives that we are talking about here, and I’ll be doing all I can to ensure that every possible help is given to those affected. 

“I’ve spoken with Government this evening to get an update on the situation and to explain the importance of the business to local people and I will be holding more discussions to ensure support is put in place, if this matter isn’t resolved positively.

“It is expected that this matter may not be resolved for some weeks and while this causes great uncertainty to those workers affected, it means there is still hope for a positive resolution to a disfficult situation.”

An HMRC spokesperson said: “We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances.”

 

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