Memories of Brymbo Steelworks

UNITED ENGINEERING STEELS LIMITED NEWS RELEASE
EMBARGOED: NOT FOR PUBLICATION BEFORE 1000 HOURS ON MONDAY, 14TH MAY 1990

Closure of Brymbo Steel Works

United Engineering Steels Limited today announce that they have commenced discussions with the employees and relevant Trades Unions on the closure of Brymbo Steel Works. There are 1125 employees involved.

UES has some 75% and 20% of the markets for special engineering steels in the UK and Europe respectively. In the short term the demand situation is showing increased signs of weakness, and in the medium term the opportunity for increasing these significant market shares at remunerative price levels is unlikely. UES is currently operating its steel plants at only 75% of capacity.

There is a substantial and continuing pressure on the cost base of UK steel production arising from the increasing costs of materials, fuels and employment. To ensure that UES remains competitive, it is necessary to make significant reductions in fixed costs.

It is possible to transfer the whole of the Brymbo order book onto the continuing plants at Templeborough, Aldwarke and Stocksbridge. This would enable 85% of UES output to be produced on the continuously cast process route which is not available at Brymbo.

Brymbo Steel Works is surrounded by residential properties and there is strong and increasing environmental pressure being brought to bear on the operations there. Significant expenditure would be required to bring the plant up to the high standards achieved elsewhere and this would add substantially to the manufacturing costs of a continuing operation.

For these reasons, UES has reluctantly reached the decision that discussions on the closure of Brymbo Steel Works should take place. This is at a time when there are significant schemes for industrial expansion and new job opportunities planned for the Wrexham area. There will be job opportunities created by the increase in operating levels at the other UES plants totalling some 250 which will be offered to employees at Brymbo with relocation assistance. Individual counselling of all employees concerned will follow.