Investment firm ‘delighted’ with turnaround of Scunthorpe steelworks

A British Steel worker in Scunthorpe   Photo: Steve Morgan/British Steel/PA Wire.
A British Steel worker in Scunthorpe Photo: Steve Morgan/British Steel/PA Wire.
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The investment firm that rescued the Scunthorpe steelworks has said it is delighted with the firm’s progress.

British Steel, which was created when Greybull Capital bought Tata Steel’s Long Products Europe business last year, employs around 3,000 people in Scunthorpe and is still recruiting, the company said.

A Greybull spokesman said: “Turnarounds are challenging and risky by nature, but we are delighted with the progress that British Steel has made since mid-2016. It has returned to trading profitably in its first year, hired over 500 new employees and apprentices, completed its first acquisition by acquiring last month FN Steel in Holland, spent over £50m on capital expenditure and acquired a stake in the Redcar Bulk Terminal in Teesside.

“We are proud that the employees will share in the success of British Steel through the profit and share ownership schemes that we have put in place.”

In a statement, Greybull said it structured and arranged a £400m financing package in 2016 to fund capital investment and working capital.

It added: “The investment was sourced from a number of leading global financial institutions. This investment came at a time when the former owners had announced that the company would be closed if no new investor was found. Greybull provided significant funding in line with these financial institutions as a junior lender, not a senior secured lender.”

A spokesman from British Steel said: “We’ve had nothing but strong support and help from Greybull since they rescued the business a year ago. They’re working with us on our turnaround and we remain pleased with the progress we are making.”