British Steel ends third quarter in profit

British Steel, the long steel products business formed from assets acquired from Tata Steel Europe, ended its third quarter in profit.

The business said it has started the new year in a strong position as it looks to execute the next stage of its turnaround plan.

British Steel said its ongoing implementation of the turnaround plan is to deliver, at the end, an upturn of 20-25 per cent based on 15/16 actual turnover in constant market conditions.

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The firm, which has sites in Skinningrove in North Yorkshire and Scunthorpe, committed £39m capital expenditure in the reporting period.

Roland Junck, executive chairman of British Steel, said: “I’m pleased to report that after our first seven months of trading, we are building on our promising start to life as British Steel.

“Having implemented the first stage of our turnaround plan, returning the business to profit and putting it on a sustainable footing, we are now well positioned to implement the next stage of the plan. This will be focused on ensuring tactical growth of both our business and brand which we see as crucial next steps in our strategy. We’re already making good progress with significant contract awards from both new and existing customers across the globe.

“A vital part of maintaining our momentum and building on our success to date is our investment for the future – in our people and our plant. We are totally committed to becoming more energy efficient and further improving the quality of our products to ensure they meet the exacting and changing demands of our customers.”

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Almost 350 new employees have joined the company since its launch on June 1 last year.

A total of 57 apprentices and 31 graduates will be taken on this year, while 26 people will join the business on placements of up to 12 months. The new people will be joining the 180 graduates, trainees and apprentices already employed by British Steel.

In addition, 20 people will be employed in sales and warehouse roles located at the company’s distribution sites in Wolverhampton, Brandon, Dartford and its new sales office in Newport.

Mr Junck said: “Our employees remain fundamental to our success. Last year, they agreed to a temporary three per cent salary sacrifice including a reduction in their pension contributions. This was implemented in June 2016 and is scheduled to be re-instated on June 1 this year.

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“We continue to enjoy incredible support from our employees and I’d like to thank them as without their skill, dedication and personal sacrifices we would not be where we stand today. The unions have remained steadfast, while the supportive handover from Tata Steel also helped us to hit the ground running on day one.”