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British steel "on track" to shake off multi-million pound losses and return to profit

Jessica Morris
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Tata Steel Prepares To Make Redundancies
Greybull bought the Scunthorpe steelworks earlier this year (Source: Getty)

British Steel said today that it’s on track to go from making multi-million pound losses to returning a profit in this financial year.

The firm successfully completed the first stage of its turnaround plan which included efficiency and cost-cutting measures, 270 new employees as well as a £50m capital investment.

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British Steel launched on 1 June after former owner Tata Steel sold its steelworks in Scunthorpe, Lincolnshire — as well as sites in Teesside, Workington and York — to turnaround specialist Greybull Capital for a nominal fee of £1.

Since then the company has been working with customers and suppliers such as Caterpillar, Toyota, Network Rail, Cargill, William Hare, Apollo, Vesuvius and Elland Steel Structures, it said today.

British Steel's executive chairman, Roland Junck, said he was "delighted" by the results. However, he urged the government to come up with a long-term strategy to ensure that the UK industry remains competitive amid the global oversupply.

Junck cautioned that while the company's future remains "firmly in our hands, the UK steel industry still faces many challenges".

Read more: UK steel industry under pressure as global trade war heats up

"That is why we are pleased to remain in constructive dialogue with the government about the strategy needed to support British Steel and ensure that it is operating on a level playing field.

"It goes without saying that any such strategy must be long-term and cross all political divides if it is to achieve the goals we all share."

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