British Steel Limited

This article is about the steel company formed 2016. For other uses, see British Steel (disambiguation).
British Steel Limited
Industry Steel
Founded 2016
Headquarters England/France
Products long products
Number of employees
 4,000
Parent Greybull Capital
Website www.britishsteel.co.uk

British Steel Limited is a long steel products business founded in 2016 from assets acquired from Tata Steel Europe by Greybull Capital. The business' primary steel production site is at the Scunthorpe Steelworks, with rolling facilities at Skinningrove (UK), Teesside (UK), and Hayange (France).

History

In the 2010s, due to combination of reduced demand in Europe (see Financial crisis of 2007–08 and Great Recession) and high company indebtidness Tata Group began a sales process of its long products division of Tata Steel Europe to Klesch Group.[1] In 2014 the long products division employed c. 6,500, and was operating at about 60% of its 5 million ton pa capacity; the division included primary production at Scunthorpe steelworks; mills in Teesside (Teesside beam mill, Skinningrove and Darlington special profiles); France (Hayange rail mill); Scotland (Dalzell and Clydebridge), and other assets including the Immingham Bulk Terminal.[2] In late 2014 estimates for the value of the property were c. $1.4 billion.[3] In August 2015 talks on the acquisition ended unsuccessfully, with Klesch citing energy prices and (dumping of) Chinese steel imports as factors against the sale.[4][5] The Scottish facilities were mothballed in late 2015, and then sold to Liberty House Group in 2016.[6][7]

In late 2015 a prelimary agreement was made with Greybull Capital for the sale of the long products division;[8] the sale was agreed on 11 April 2016 for a nominal £1, with Greybull taking over assets and liabilities of the division. At takeover the division employed approximately 5,000 persons, predominately in the UK.[9] The sale was completed at the end of May 2016, with the resulting business renamed British Steel.[10][note 1] As part of takeover new agreements were made with workers and unions, including a wage cut, end to bonus schemes, and end of a final salary pension scheme; the British Steel Pension Scheme (BSPS) was not included in the sale. Greybull stated that at acquisition the business was profitable.[12]

Operations

At creation in 2016 the business consisted of

Notes

  1. ↑ The company "British Steel Limited" was incorporated as a private limited company at Companies House on 13 February 2015.[11]

References

  1. ↑ Shanker, Abhishek; Singh, Rajesh Kumar (27 October 2014), Tata Steel Starts Debt Clean-Up After Corus Purchase Mess
  2. ↑ Klesch signs MoU with a view to purchase Tata Steel’s Long Products Europe business (PDF), Klesch Group, 15 October 2014, archived from the original (PDF) on 11 April 2016
  3. ↑ MacDonald, Alex (15 October 2014), "Tata Steel in Talks to Sell European Business to Klesch Group", www.wsj.com
  4. ↑ "Klesch abandons Tata Steel's Long Products talks", BBC News, 4 August 2015
  5. ↑ Hollinger, Peggy (3 August 2015), "Industrialist walks away from buying Tata's Scunthorpe steel plant", ft.com
  6. ↑ "270 jobs go as Tata Steel closes two plants in Scotland", BBC News Scotland, 20 October 2015
  7. ↑ Picken, Andrew (20 March 2016), "Scottish steel jobs saved as deal struck to reopen plants", Sunday Post
  8. ↑ "Tata Steel in talks to sell Scunthorpe and Teesside plants", BBC News, 22 December 2015
  9. ↑ Sources:
  10. ↑ Rodionova, Zlata (1 June 2016), "Tata Steel saves 4,400 jobs with sale of Scunthorpe site to Greybull Capital", Tata Steel saves 4,400 jobs with sale of Scunthorpe site to Greybull Capital
  11. ↑ "BRITISH STEEL LIMITED – Company number 09438207", beta.companieshouse.gov.uk, retrieved 1 June 2016
  12. ↑ Tovey, Alan; Davidson, Lauren (1 June 2016), "Greybull claims Scunthorpe steelworks is 'profitable' as it takes control from Tata Steel", The Telegraph
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