British Steel is up and running following the successful completion of the sale of Tata Steel UK’s Long Products Europe business to Greybull Capital.
Peter Hogg, British Steel’s commercial director commented, “Today marks the first day of business for our new company and we are delighted to be launching under the iconic British Steel brand.”
Mr Hogg thanked local and national government and local MPs for their support and stressed that the formation of British Steel was all thanks to ‘a strong partnership’ between the company’s employees, their union representatives, customers and suppliers.
“Our industry has faced challenging times over the last few years, but we are confident that our new venture, built on our core values of pride, passion and performance, will not only reinvigorate this business, but position it as a world leader,” he said.
Hogg’s sentiments were echoed by Paul McBean, chairman of the Scunthorpe site’s Multi Union, who described British Steel’s first day of trading as ‘a momentous occasion’.
“I am delighted we are relaunching our fantastic business as British Steel,” said McBean.
Greybull Capital has arranged a £400m investment and financing package to support the turnaround plan being implemented by the management and employees. The financing has been provided entirely by a combination of shareholders and their banks and is available to British Steel to fund working capital and future investments.
Greybull’s Marc Meyohas was equally delighted. “We have confidence in the transformation plan and the ability of management and the workforce to implement the required changes,” he said.
Meyohas praised the ‘great professionalism’ shown by the workforce and the trade unions.
The new British Steel employs 4,800 people (4,400 in the UK and 400 in France) and will produce 2.8Mt of steel every year.