â€Right that wrong’ now plea
Sheffield has been known as the â€City of Steel’ since the 19th century when innovations like crucible and stainless steels were developed there.
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Today Sheffield Forgemasters is one of the last remaining steel manufacturers in the city and dates back to 1805.
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Specialising in customised parts for energy and defence companies, including elements used on the Trident nuclear submarines its products are very niche.
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The company, which employs 700 people has today (January 20) announced 100 job losses as part of a survival package.
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In 2010, the coalition government scrapped an ÂŁ80m loan to fund Sheffield Forgemasters’ expansion into nuclear power parts. A loan that would have allowed the company to invest in new equipment making it more productive.
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“The government now needs to right that wrong by guaranteeing that British companies such as Sheffield Forgemasters are never again excluded from tendering for British infrastructure projects,” said Harish Patel, Unite national officer for steel.
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Sheffield Forgemasters’ announcement comes just two days after Tata Steel UK announced 1,050 job cuts from its Port Talbot steelworks, to try to stem losses of about £1m a week.
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In addition to the job losses it is expected that there will be contractual changes to the remaining workforce over the next two years as the company implements a turnaround plan.
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Urgent support
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“World class companies like Sheffield Forgemasters need urgent support and a level playing field with their competitors if they are to survive,” said Harish.
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“If it is made for Britain than is must be built using British steel,” he added.
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Over the coming weeks and months Unite will be working closely with the company to help secure its long-term future and will be supporting its members through this very difficult time.
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“Firms such as Forgemasters should be looking forward to helping build the new gas and nuclear power plants which are in the pipeline, not left fighting for their survival on an uneven playing field,” said Harish.
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Unite has been calling for cast iron guarantees that if its built for Britain is uses British steel, the union urged ministers to give assurances that there wouldn’t be a repeat of the phase one tendering process for Hinckley Point C.
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It is reported that British firms, including Sheffield Forgemasters, were excluded from the tendering process.
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“Yet again we urge the government to act swiftly and decisively to secure the future of our steel industry as part of an active strategy before it is too late,” added Harish.
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