William Eichler 16 August 2019

Deal to secure British Steel nearly ‘over the line'

A deal is close to being finalised that could see the struggling steel manufacturer British Steel brought out of insolvency.

British Steel, formerly Tata Steel, was put into compulsory liquidation in May after rescue talks with the Government broke down.

However, the Turkish Armed Forces Assistance Fund (Oyak) has said it plans to take over the steel manufacturers by the end of the year.

British Steel employs 5,000 people in total. It owns the Scunthorpe steel works where 3,000 people work and it employs another 800 on Teesside.

An estimated 20,000 jobs in the company’s supply chain were said to be at risk if British Steel had gone under.

Tees Valley Mayor Ben Houchen described the news of the deal as ‘fantastic’.

‘A potential buyer has now agreed terms to buy British Steel as whole and to run it as a business,’ he said.

‘They have now entered into an exclusive period to finalise legal documentation over the coming weeks, which will secure the long-term future of British Steel.

‘Since the day the business went into liquidation we’ve been working tirelessly behind the scenes with Government to get talks to this point and it’s a massive step forward for all parties that a deal is agreed.

‘While it’s not quite over the line yet, this will be a huge weight off the shoulders of local workers, their families and the supply chain.’

Cllr Rob Waltham, leader of North Lincolnshire Council, said: 'We are optimistic about the future of British steel. The fact that this has gone to the heads of terms means the preferred buyer has put their signature on a piece of paper that they are interested in buying the whole site in Scunthorpe and the businesses attached, which is positive. Moving forward they are going to need to make some firm commitments to investing in the site.

'The council will continue to be a main partner working with the government to support the workers. It matters to us because they are our family, friends and neighbours, it is important we are a key stakeholder.'

Business secretary Andrea Leadsom commented: ‘This is an important and positive step forward in securing the future of British Steel.’

Skate parks are not the only fruit image

Skate parks are not the only fruit

On Go Skateboarding Day, Susannah Walker asks councils and their leisure and park departments to think differently about what facilities they provide for teenagers.
For your free daily news bulletin
Highways jobs

Interim Head of Fostering

Tile Hill
Negotiable day rate
We are working with a local authority client in London who is looking for an Interim Head of Fostering, the local authority was last inspected as “... London (Central), London (Greater)
Recuriter: Tile Hill

Interim Head of Children in Care and Care Leavers

Tile Hill
Negotiable day rate
We are working with a local authority client in London who is looking for an Interim Head of Children in Care and Care Leavers, the local authority... London (Central), London (Greater)
Recuriter: Tile Hill

Head of Regeneration and Economy

City of York Council
£59,593 - £68,094
York is a wonderful place to live and work and it is quite rightly famous across the globe. York, North Yorkshire / Hybrid
Recuriter: City of York Council

Clinical Lead, North Essex

Essex County Council
Clinical Lead, North EssexPermanent, Full TimeUp to £57,869 per annumLocation
Recuriter: Essex County Council

Assistant Director Legal,&Governance/Monitoring Officer

Rochdale BC
£70,340 - £81,589
The Assistant Director role has breadth of responsibility beyond legal services incorporating Constitutional and Democratic Services Rochdale, Greater Manchester
Recuriter: Rochdale BC

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.