British Steel in Liquidation

British Steel has been placed in liquidation. The company has been wound up in the High Court and the Official Receiver and EY are looking for a buyer to take over the business. If a buyer cannot be found, the business could be wound up and the 5,000 employees could lose their jobs.

Greybull Capital who owned the business stated: “The turnaround of British Steel was always going to be a challenge and yet the business overcame many difficulties and until recently looked set for renewed prosperity.

The workforce, the trade unions and the management team have worked closely together in their determination to strengthen the business. However, the additional blows dealt by Brexit related issues have proven insurmountable.”

There are around 3,000 jobs at risk at the Scunthorpe site and several hundred on Teesside. The business also supports another 20,000 jobs in the supply chain.

The business is the major supplier of rails to Network Rail and is also a key supplier of steel products to the construction industry.

Given the importance of the business to the UK economy, we believe that it would be a travesty if it were to be shut down. There are numerous important construction and infrastructure projects in the pipeline that could support the business for many years to come.

In considering how to move forward, those in authority need to take account of the full cost of preserving or closing the business; including the impact on the balance of payments that could occur if we had to import replacement products, especially during a period of adverse currency conditions; the costs of re-training and redeploying the workforce; the costs to be borne by the local communities involved if workers have to move away to find employment; and the cost of creating replacement jobs of equivalent value.

Leave a Reply

Your email address will not be published. Required fields are marked *