Posted on 02 Jul 2019
Troubled steelmaker British Steel has received a number of bids that are being analysed by administrators, while production continues, Kallanish learns from sources. The deadline for the presentation of bids expired at the end of last week.
Last week local media reported that the bidders for the entirety of British Steel or parts of it are Network Rail, JSW, Hesteel Group, Baowu, Liberty, Evraz, and former owner Greybull Capital.
Gareth Stace, director of UK Steel, stresses that the steel sector wishes to see the entire business being acquired by a single owner. Based on the initial comments of administrators it looks as if some of the received bids are indeed for the whole of British Steel, he adds.
Going forward Stace notes that a number of uncertainties exist over British Steel’s future, such as Brexit and high energy costs in the UK. However, the business in which the company specialises – rails and special steels – is looking to grow during the coming years.
UK steel trade unions have confirmed that a number of bids were received for British Steel.
“GMB, the union for steelworkers, has welcomed bids received for British Steel after the Official Receiver reported encouraging levels of interest,” the group said in a statement by its national officer Ross Murdoch. “Production will carry on as normal as workers await consideration of the bids, and in hope that this vital industry gets the proper support it needs to be safeguarded for the longer term.”
