Council leaders saddened as steel factory announces potential closure
Leaders at Gateshead Council say they are saddened by the announcement today by Union Electric Steel UK that it may close the doors to its historic local plant.
About 180 jobs are under threat following the revelation by the American-owned company that it could close its Gateshead plant on Coulthards Lane, which is adjacent to the flyover.
In a statement released today, bosses at the business say it has suffered losses in recent years with high energy costs and lack of demand among the reasons for this. They added a consultation has now been launched on ceasing production at the plant, which produces products called cast rolls.
The historic site, which has been producing steel for more than 150 years, was previously known as the Davy Roll Company, before being acquired in 1999 when its name changed to Union Electric Steel.
Council Leader, Councillor Martin Gannon, said the council is working with the company and its workforce to support them at this time.
Responding to the news today, he said:
"We are saddened by the announcement today from Union Electric Steel, a company which has a long history and legacy of operating in Gateshead, known to many as Davy Roll.
"Our immediate attention now turns to working with the company to do all that we can to support them and their workforce during the consultation period. The council, together with the North East Combined Authority, has mobilised a range of support services available to the company and its employees, and looks forward to positive dialogue moving forward."
"The council recognises the difficult situation the company finds itself in and the impact such a closure would have on those working at the plant, many of whom are Gateshead residents. I hope a conclusion can be reached without the loss of jobs and the council will work with all relevant parties towards this outcome."
Leaders at Gateshead Council say they are saddened by the announcement today by Union Electric Steel UK that it may close the doors to its historic local plant.
About 180 jobs are under threat following the revelation by the American-owned company that it could close its Gateshead plant on Coulthards Lane, which is adjacent to the flyover.
In a statement released today, bosses at the business say it has suffered losses in recent years with high energy costs and lack of demand among the reasons for this. They added a consultation has now been launched on ceasing production at the plant, which produces products called cast rolls.
The historic site, which has been producing steel for more than 150 years, was previously known as the Davy Roll Company, before being acquired in 1999 when its name changed to Union Electric Steel.
Council Leader, Councillor Martin Gannon, said the council is working with the company and its workforce to support them at this time.
Responding to the news today, he said:
"We are saddened by the announcement today from Union Electric Steel, a company which has a long history and legacy of operating in Gateshead, known to many as Davy Roll.
"Our immediate attention now turns to working with the company to do all that we can to support them and their workforce during the consultation period. The council, together with the North East Combined Authority, has mobilised a range of support services available to the company and its employees, and looks forward to positive dialogue moving forward."
"The council recognises the difficult situation the company finds itself in and the impact such a closure would have on those working at the plant, many of whom are Gateshead residents. I hope a conclusion can be reached without the loss of jobs and the council will work with all relevant parties towards this outcome."
