Tata Steel UK has reportedly put together a restructuring plan that could save it’s Scunthorpe refinery from shutting down.
A new investor has come onto the scene that could potentially see £400m being pumped into the business, it was reported in the Sunday Telegraph, citing sources close to the proposal.
The deal could include an overhaul of the business that would see costs scaled back, and changes to employee and supplier contracts.
The turnaround at the business, which has been all but written off by many industry watchers, could see operations pulling in £100m in profit in as little as 24 months.
Currently the plant is set to post losses of £100m for the year, on revenues of about £1.6bn.
There have already been formal offers for the business.
Turnaround specialists Endless and Greybull, as well as an as yet unnamed US outfit, have made bids for the firm.
Tata Steel has been struggling in recent months, along with peers SSI and Caparo, due to the fall in steel price as China continues to flood the market with cheap materials and lower costs of production in Europe.