British Steel (2016–present)

{{See also|Tata Steel Europe}}

During the 2010s, a combination of reduced demand for steel in Europe after the 2008 financial crisis and Great Recession and high company indebtedness led to the Tata Group beginning a sales process for the long products division of Tata Steel Europe to the Klesch Group.{{cite web| url =https://www.bloomberg.com/news/articles/2014-10-27/tata-steel-starts-debt-clean-up-after-corus-purchase-mess| title = Tata Steel Starts Debt Clean-Up After Corus Purchase Mess| first = Abhishek| last = Shanker | first2 = Rajesh Kumar |last2 = Singh | date = 27 October 2014 | accessdate = 1 June 2016}} In 2014 the long products division employed approximately 6,500 workers and was operating with 2.8 million tonne p.a. capacity. The division included primary production at Scunthorpe steelworks, mills in Teesside (Teesside beam mill, Skinningrove and Darlington special profiles), France (Hayange rail mill) and Scotland (Dalzell and Clydebridge), along with other assets, now sold Immingham Bulk Terminal.{{cite web| url = http://www.klesch.com/docs/default-source/default-document-library/please-click-here-to-view-article-as-pdf-.pdf| archiveurl =https://web.archive.org/web/20160411191444/http://www.klesch.com/docs/default-source/default-document-library/please-click-here-to-view-article-as-pdf-.pdf| archivedate = 11 April 2016| title = Klesch signs MoU with a view to purchase Tata Steel’s Long Products Europe business | date = 15 October 2014| publisher = Klesch Group| accessdate = 1 June 2016}} In late 2014 estimates for the value of the property was approximately $1.4 billion.{{cite web| url = https://www.wsj.com/articles/tata-steel-in-talks-to-sell-european-business-to-klesch-group-1413396588| title = Tata Steel in Talks to Sell European Business to Klesch Group| date = 15 October 2014| first = Alex| last = MacDonald| work = www.wsj.com | accessdate = 1 June 2016 }} Talks during August 2015 on the acquisition ended unsuccessfully, with Klesch citing energy prices and (dumping of) Chinese steel imports as factors against the sale.{{cite news| url =https://www.bbc.co.uk/news/business-33772944| title = Klesch abandons Tata Steel's Long Products talks | date = 4 August 2015| work = BBC News | accessdate = 1 June 2016}}{{cite news| url =https://next.ft.com/content/42d919e8-3a07-11e5-bbd1-b37bc06f590c| title = Industrialist walks away from buying Tata’s Scunthorpe steel plant| first = Peggy| last = Hollinger| date = 3 August 2015 | work = ft.com | accessdate = 1 June 2016}} The Scottish facilities were mothballed in late 2015, and then sold to Liberty House Group in 2016.{{cite news| url =https://www.bbc.co.uk/news/uk-scotland-glasgow-west-34575423| title = 270 jobs go as Tata Steel closes two plants in Scotland| date = 20 October 2015| work = BBC News Scotland | accessdate = 1 June 2016}}{{cite news| url = https://www.sundaypost.com/news/scottish-news/scottish-steel-jobs-saved-deal-struck-reopen-plants/| title = Scottish steel jobs saved as deal struck to reopen plants| date = 20 March 2016| work = Sunday Post| first = Andrew| last = Picken | accessdate = 1 June 2016}}

In late 2015 a preliminary agreement was made with Greybull Capital for the sale of the long products division.{{cite news| url =https://www.bbc.co.uk/news/business-35160675| title = Tata Steel in talks to sell Scunthorpe and Teesside plants| date = 22 December 2015| work = BBC News | accessdate = 1 June 2016}} The sale was agreed to on 11 April 2016 for a nominal £1, with Greybull taking over the assets and liabilities of the division. At takeover the division employed approximately 5,000 workers, predominately in the UK.Sources:

• {{cite news | title = Tata announces Scunthorpe plant deal | url = https://www.bbc.co.uk/news/business-36015797 | date = 11 April 2016 | work = BBC News| accessdate = 1 June 2016 }}
• {{cite web| url = http://www.europe.tata.com/Section/Article/tata-steel-long-products-sale?sectid=Q753bw1G5ro%3D| title = Tata Steel UK agrees sale and purchase agreement for long products Europe business| date = 11 April 2016| publisher = Tata| type = press release| accessdate = 1 June 2016| archive-url = https://web.archive.org/web/20160422200044/http://www.europe.tata.com/Section/Article/tata-steel-long-products-sale?sectid=Q753bw1G5ro%3D| archive-date = 22 April 2016| url-status = dead}}
• {{cite news| url = https://www.bloomberg.com/news/articles/2016-04-11/tata-selling-long-products-steel-business-to-greybull-capital| title = Tata Selling U.K. Steel Plant in Scunthorpe to Greybull| first = Thomas| last = Biesheuvel| first2 = Naomi| last2 = Christie| work = www.bloomberg.com| date = 11 April 2006| accessdate = 1 June 2016}}
• {{cite web| title = Britain finds a buyer for one Tata steel plant, saving a third of jobs at risk| url = https://www.reuters.com/article/tata-steel-britain-idUSL5N17E1C0| date = 11 April 2016| first = Guy| last = Faulconbridge| first2 = Sarah| last2 = Young| work = www.reuters.com| accessdate = 1 June 2016}} The sale was completed at the end of May 2016, with the resulting business renamed British Steel.{{cite news| url = https://www.independent.co.uk/news/business/news/tata-steel-saves-4400-jobs-with-sale-of-scunthorpe-site-to-greybull-capital-a7059166.html | title = Tata Steel saves 4,400 jobs with sale of Scunthorpe site to Greybull Capital| first = Zlata| last = Rodionova| date = 1 June 2016| work = The Independent| accessdate = 1 June 2016 }}{{refn|group="note"|The company "British Steel Limited" was incorporated as a private limited company at Companies House on 13 February 2015.{{cite web| url =https://beta.companieshouse.gov.uk/company/09438207| title = BRITISH STEEL LIMITED – Company number 09438207| accessdate = 1 June 2016| work = beta.companieshouse.gov.uk }}}} As part of the takeover, new agreements were made with workers and unions, including a wage cut, end to bonus schemes, and the end of a final salary pension scheme. The British Steel Pension Scheme (BSPS) was not included in the sale. Thanks to a restructuring effort led by Bimlendra Jha (then Executive Chairman of Longs Steel U.K.) Greybull stated that at acquisition the business was profitable.{{cite news | url=https://www.telegraph.co.uk/business/2016/06/01/tata-steel-completes-sale-of-scunthorpe-site-to-greybull/| title = Greybull claims Scunthorpe steelworks is 'profitable' as it takes control from Tata Steel |first = Alan| last = Tovey| first2 = Lauren| last2 = Davidson| date = 1 June 2016| work = The Telegraph| accessdate = 2 June 2016}}

In June 2017, it was reported that the previously loss-making plant at Scunthorpe was once again back in profit, a year after Greybull took the concern over from Tata Steel. The 2015–2016 financial year saw a loss of £79 million, while 2016–2017 produced a profit of £47 million before tax. In light of this, British Steel Limited announced that the 3% pay cut agreed to by the workers on takeover, would be reversed.{{cite news |last=Lea |first=Robert |date=2 June 2017 |title=British Steel gets back on track with immediate return to profit |url=https://www.thetimes.com/article/british-steel-in-scunthorpe-gets-back-on-track-with-immediate-return-to-profit-ql3f9p7qk |work=The Times |page=44 |issue=72239 |issn=0140-0460}}

On 22 May 2019, British Steel was placed into an insolvency process, putting 5,000 jobs in the UK at risk and endangering 20,000 in the supply chain. The move followed a breakdown in rescue talks between the government and the company's owner, Greybull. The Government's Official Receiver took control of the company as part of the insolvency process. Accountancy firm EY took on the role of Special Manager and is attempting to find a buyer for the business.{{cite news|url=https://www.bbc.co.uk/news/business-48365241|title=British Steel enters insolvency endangering 5,000 jobs|date=22 May 2019|work=BBC News|accessdate=22 May 2019}} Theresa May announced to parliament that HM Treasury had "agreed an indemnity for the official receiver to enable British Steel to continue to operate in the immediate future". The Guardian also reported in the same article that "The number of people employed in UK steel manufacturing has fallen by 300,000 since 1971", from 310,000 to around 10,000 in 2019.{{cite news|url=https://www.theguardian.com/business/2019/may/22/british-steel-to-enter-insolvency-after-rescue-talks-with-government-fail|title=British Steel enters insolvency after rescue talks with government fail|date=22 May 2019|work=The Guardian|accessdate=22 May 2019}}

In August 2019, Oyak, a Turkish army pension fund announced that it planned to take over British Steel by the end of 2019 however talks stalled.{{cite news |title=Turkish army pension fund to buy British Steel |url=https://www.bbc.co.uk/news/business-49368217 |website=BBC News|accessdate=16 August 2019 |date=16 August 2019}}

In November 2019, Chinese steel manufacturers Jingye Group agreed to buy British Steel for £70 million.{{cite news |url=https://www.bbc.co.uk/news/business-50369413 |website=BBC News |accessdate=10 November 2019 |date=10 November 2019 |title=British Steel agrees £70m rescue with Chinese firm}} The take-over was completed in March 2020

On 12 April 2025, Parliament was recalled to debate a bill presented by the Business Secretary, Jonathan Reynolds, which would enable the government to take control of British Steel, following concerns about the Jingye Group attempting to shut down its Scunthorpe site by intentionally not purchasing supplies of raw material required to operate its blast furnaces.{{cite news |url=https://theconversation.com/what-caused-the-crisis-at-british-steel-254557 |title=What caused the crisis at British Steel? |work=The Conversation |first=Hossein |last=Zarei | date=15 April 2025}} {{cite news |url=https://www.independent.co.uk/news/uk/politics/parliament-recall-british-steel-nationalisation-b2731660.html |title=Parliament to be recalled to debate nationalising beleaguered British Steel as PM says its future 'hangs in balance' |work=The Independent |first=Archie |last=Mitchell| date=11 April 2025 |archive-url=https://web.archive.org/web/20250412124451/https://www.independent.co.uk/news/uk/politics/parliament-recall-british-steel-nationalisation-b2731660.html |archive-date=12 April 2025 |url-status=live}}{{cite web |url=https://www.nbcrightnow.com/national/uk-parliament-to-be-recalled-saturday-to-discuss-british-steels-future/article_8a4d7c0d-475e-5e5c-a359-bb564bc0bc53.html |title=UK parliament to be recalled Saturday to discuss British Steel's future |website=KNDO |agency=Agence France-Presse |first=Peter |last=Hutchison |date=11 April 2025 |archive-url=https://web.archive.org/web/20250412125057/https://www.nbcrightnow.com/national/uk-parliament-to-be-recalled-saturday-to-discuss-british-steels-future/article_8a4d7c0d-475e-5e5c-a359-bb564bc0bc53.html |archive-date=12 April 2025 |url-status=live}} This was a highly unusual measure, as the last time Parliament was recalled during recess was during the 2021 Taliban takeover of Afghanistan.

Business Secretary Jonathan Reynolds told MPs the government's likely next step would be to nationalise the Scunthorpe plant, which employs 2,700 people. The legislation will hand Reynolds sweeping powers to control management and workers at the plant to ensure production continues, including entering it by force, if necessary, to secure assets, but Jingye will retain ownership of it for now.{{cite news |date=12 April 2025 |title=UK seeks emergency powers to take over British Steel |url=https://www.bbc.co.uk/news/articles/ckg17g39x41o |access-date=12 April 2025 |website=BBC News }} Meanwhile, workers prevented Jingye executives from entering parts of the Scunthorpe plant. Police were called in, though no arrests were made.{{cite web |url=https://www.theguardian.com/business/2025/apr/12/emergency-law-passed-to-force-loss-making-steel-companies-to-keep-operating |title=Emergency law passed to force loss-making steel companies to keep operating | editor-first=Toby |editor-last=Helm |first=Jasper |last=Jolly |date=12 April 2025 |publisher=The Observer |access-date=14 April 2025}} Within hours, the bill was passed by both chambers of the parliament, received royal assent and became law as the Steel Industry (Special Measures) Act.{{cite web |title=Royal Assent - Volume 845: debated on Saturday 12 April 2025 |url=https://hansard.parliament.uk/Lords/2025-04-12/debates/59D77A01-E69A-423E-B0C8-AC5E24D3A6EA/RoyalAssent |date=12 April 2025 |website=UK Parliament |series=Hansard |access-date=14 April 2025 |quote=6.00pm - The following Act was given Royal Assent: Steel Industry (Special Measures) Act.}}{{cite web |url=https://news.sky.com/story/emergency-bill-to-protect-british-steel-becomes-law-13347106 |title=Emergency bill to protect British Steel becomes law |website=Sky News |date=13 April 2025 |access-date=13 April 2025}}

File:British Steel - BOS plant (geograph 5763104).jpg plant]]

At creation in 2016, the business consisted of:

• Scunthorpe Steelworks, England – primary blast furnace based production – bloom, billet, sections, slab, rail and wire rod and is the largest steel factory in the UK. In November 2023 the furnace was announced to close.{{cite news |date=6 November 2023 |title=British Steel plans to shut furnaces putting up to 2,000 jobs at risk |work=BBC News |url=https://www.bbc.com/news/business-67332093 |access-date=6 November 2023}}
• Teesside Steelworks, England (Teesside Beam Mill) – heavy sections
• Skinningrove Steelworks, England – special sections and crane rail
• Former Sogerail plant, Hayange, France – railway rails
• An engineering workshop in Workington

{{Reflist|group="note"}}

{{Reflist}}

{{Iron and steel production}}

{{Authority control}}

Category:British companies established in 2016

Category:Companies based in Scunthorpe

Category:Steel companies of the United Kingdom

Category:2016 establishments in England

Category:2019 mergers and acquisitions