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Closure 'the only viable option' for steel plant
The Journal
|June 04, 2025
THE closure of a historic steel plant in Gateshead which employs almost 200 people has been confirmed. Union Electric Steel has announced that its operations in the UK will cease in spring 2026.
The plant currently employs around 170 people but its American owners announced earlier this year that it was considering closure. That move has now been confirmed, with the company saying it had made the decision after "a comprehensive analysis of the company's long-term viability in the UK market, including the impact of economic pressures and shifts in global demand."
Formerly known as Davy Roll, the site has been producing steel for more than 150 years. But challenges including high energy costs and inflation contributed to a near £6m loss in 2023 and a decrease in its workforce.
North East mayor Kim McGuinness and Gateshead MP Mark Ferguson had been involved in efforts to save the plant, but they have not been successful.
This story is from the June 04, 2025 edition of The Journal.
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