Gateshead Steel Plant Closure a Major Blow, Council Leader States

A steel plant in Gateshead might close. This would be a “major blow,” said the council leader, Martin Gannon, who is concerned about job losses. Union Electric Steel may cut 180 jobs at the plant, which is near the Gateshead Flyover and has made steel for 150 years, formerly as the Davy Roll Company.

The company reported it lost money for three years, making operations unsustainable. Gannon said the closure would hurt Gateshead’s economy. He spoke about the potential economic impact, adding that the council will try to support the company and explore all possible options.

High energy costs, lack of demand, increased employer national insurance, and the effects of Brexit are all factors contributing to the closure risk. These issues significantly hurt the company’s viability.

Gannon compared the potential closure to De La Rue’s job cuts. De La Rue printed banknotes and UK passports in the Team Valley; however, the passport contract went to a French firm in 2018, affecting the De La Rue facility and its workforce.

Gannon mentioned Boris Johnson and Brexit, stating that the “blue passport” promise failed and contributed to De La Rue’s closure. He noted that Brexit factors are also hurting Union Electric Steel.

Will Garrett, the managing director, called the situation “incredibly difficult.” Their priority is to support staff currently and explore all other options. He indicated that a decision might not happen soon.

The company still has orders for 2025 and will operate normally during the review. Implementation would not occur before late 2025. Union Electric Steel continues to focus on quality products, as it has for many years.