LONDON: British Steel, the name that was once part of FTSE 100 Index but was merged with Corus in 1999 and eventually with Tata Steel in 2007, has been revived after completion of the sale of Tata’s Long Products Europe Division at Scunthorpe this week.
The sale to Greybull Capital was announced in April. No figures were officially released but industry sources said the business was sold for the token amount of £1 and was supported by a £400 million (Rs4,000 crore) investment.
Tata Steel said that during the last 12 months, the Long Products Europe business has implemented a transformation plan including a portfolio restructuring of assets, underpinned by committed support from employees and their trade unions.
Under the new ownership, it will trade under the name of British Steel. Greybull Capital is also among seven bidders for Tata Steel’s other UK assets, whose sale process is underway, including an official consultation on restructuring a deficit-ridden pension scheme that is seen as a deterrent to buyers.
Bimlendra Jha, executive chairman of the Long Products Europe business and CEO of Tata Steel UK said: “As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull Capital ownership, the business will continue the momentum of the improvement program that has been initiated in the last 12 months”.
The Long Products Europe business includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities. It also has a rail mill in northern France.
The business employs 4,800 people – 4,400 in the UK and 400 in France.