Dozens of potential buyers identified for British Steel at Scunthorpe

Under threat: British Steel at Scunthorpe
Under threat: British Steel at Scunthorpe
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Dozens of potential buyers for British Steel have been identified by the Official Receiver a week after it plunged into liquidation, putting 5,000 jobs and 20,000 more in the supply chain at risk.

More than 3,000 workers at Scunthorpe, the largest steel factory in the UK, are waiting anxiously for news, along with hundreds of others at Lackenby and Skinningrove.

The business, which sold for £1 to its last owner Greybull Capital in 2016, is continuing to trade and the workforce is being paid, while the search goes on.

The Official Receiver said 80 potential trade purchasers had been contacted, of whom 60 had been sent non-disclosure agreements.

Expressions of interest need to be in by early June.

Shock as British Steel goes into official receivership
A statement added: "Good progress is being made in identifying potential buyers for British Steel.

"Multiple parties have signed non-disclosure agreements giving them access to a detailed information memorandum and virtual data-room that my team has developed to inform their bids.

"The indemnity provided to me has enabled British Steel to continue to trade and the company retains good support from its customers.

“I would like to thank the workforce for their ongoing support.”

Scunthorpe MP Nic Dakin said the sales process needed to be carried out with “some urgency”.

He said: “People have been through difficult times before. My sense is that people are focussed on making this business do the job it has to do so it is in a strong position to move onto a new ownership arrangement.”