Wednesday 20 July 2016 1:59 pm

Industry veteran to head firm formed from Tata’s long products division

British Steel, the company that emerged from the sale of Tata Steel's European long products business to Greybull Capital, announced today that it has appointed industry veteran, Roland Junck, as executive chairman.

Junck, who has stints at the helms of Nyrstar and ArcelorMittal under his belt, will lead the new firm until a permanent chief executive is found. He's been advising British Steel's senior management team since mid-June.

Read more: UK Steel "encouraged" by May's support for the Welsh steel sector

Junck said: "While everyone is aware of the challenges the steel industry faces, British Steel already has a strong business plan in place."

He'll have to grapple with high energy prices, as well as a slew of cheap Chinese steel dumped on global markets which has decimated the European industry.

Read more: Tata Steel spurned £100m-plus offer due to pensions burden

Greybull bought Tata's European long products business for a token £1 in June. The investment firm also secured a £400m financing package, meaning the deal was completed without any government subsidies.

Back then, it announced that the steelworks in Scunthorpe had actually been profitable for months. It initially entered into sales talks for what was then a loss-making business late last year.

Marc Meyohas, Greybull partner, added: "Roland's extensive industry experience will be most valuable to British Steel and its turnaround plan."