British Steel set to return to Teesside after new deal
Tata have confirmed the sale of their Long Products Europe division to Greybull Capital, including two Teesside sites which provide hundreds of jobs in the region.
Tata Steel UK have confirmed they've done a deal to sell their Long Products Europe division, including two sites in our region.
Hundreds of people work at the Teesside Beam Mill and another site near Darlington.
The company released this statement:
"Tata Steel UK today announced the completion of the sale of its Long Products Europe business to Greybull Capital LLP.
"During the last twelve months, the Long Products Europe business has implemented a transformation plan including a portfolio restructuring of assets, underpinned by committed support from employees and their trade unions. This has focused the business on higher-value markets supported by a more competitive cost base. "Mr Bimlendra Jha, Executive Chairman of the Long Products Europe business and CEO of Tata Steel UK said: “As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull Capital ownership, the business will continue the momentum of the improvement program that has been initiated in the last 12 months. "'Employees and trade unions have worked closely with the Long Products Europe management team to improve the business’s prospects, putting it in a more competitive position than it has been for many years. It is through their dedication and hard work that we are in this position today in spite of continued challenges in the market'. "From today the Long Products Europe business, which in the UK includes the Scunthorpe steelworks, two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a rail mill in northern France, will trade under the name of British Steel. All together the business employs 4,800 people – 4,400 in the UK and 400 in France. "The sale follows an accelerated process of negotiations between Tata Steel UK and Greybull Capital to achieve this outcome."
The move's been welcomed by the Community Union. General Secretary, Roy Rickhuss, said: "Community warmly welcomes the opening of this new chapter in the course of the UK steel industry. It also demonstrates that there is the chance of a brighter future for steel making in the UK, with the right vision and investment.
"Today marks the start of a new journey for UK steel making and there may be more challenges ahead. That's why it's vital that the government continues to take action to deliver on the promises it's made to the industry and to develop and implement an integrated industrial strategy and a long-term vision for UK steel. "Today also brings to an end a long period of uncertainty for steelworkers within the Long Products business. From the first moment Tata put the business up for sale, we insisted that they be a responsible seller and allow time for the right buyer to come forward and for the deal to be completed. Tata has honoured that commitment with this deal but now they must do the same for the remainder of their UK operations and work with Community through the sales process."