The steelmaker’s chief executive, John Burt, has quit after the government announced plans to shut down its Steelworks plant in Swansea after three years in business.
“Our decision today is a result of a number of factors,” said Burt in a statement, adding: “The impact on the Welsh economy and on the local workforce will be felt for many years to come.”
The decision came a day after the Welsh Government announced plans for the closure of the Swansea Steelworks after three decades in business, leaving hundreds of steelworkers without jobs and leaving thousands of other local residents without power.
Steelworks chief executive John Birt resigns over Swansea Steel’s closure The announcement came as the UK government announced it would close a £1.3bn steel plant in Wrexham after a two-year review which found the plants future was at risk because of rising fuel costs and a drop in the price of natural gas.
The announcement came after a meeting of the cabinet of ministers and the environment secretary, Owen Paterson, who said: “I can confirm that the steelworks will be closing this week.”
“I want to reassure the Welsh community that the Welsh steelworkers are in a strong position.
Our team will be able to provide a new, secure, and safe work environment for the Welsh workforce.”
On Friday, the government said it planned to close the steel plant on a “one-off basis” in a bid to bring the steel industry “back into balance”.
The government said a “delivery timetable” for the shutdown had not been announced, but the announcement came a week after the closure was announced by Welsh Secretary Owen Patersons predecessor, Paul Givan, who was sacked.
On Tuesday, Mr Givan said that the decision to close steelworks would have “little to do with the outcome of the Brexit negotiations and more to do” with the “economic reality of the situation in Wales”.
“This decision is in line with the Government’s plans for steelmaking, which aim to ensure that our steel industry continues to provide employment to our people,” he said.
He said that a decision on whether to shut the plant would depend on “the future needs of the industry and its ability to provide jobs and secure financial support”.
“The Government is not going to make decisions based on the outcome from Brexit,” he added.
Last month, the Welsh government said that it would not be making any further comment about the decision.
This article was amended on Friday to correct a reference to the Swansea steelworks closure.