Tata sells Scunthorpe steel plant to investment firm Greybull Capital
The move will safeguard more than 4,000 jobs
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Tata Steel has sold its Long Products Europe business, including its Scunthorpe plant, to investment firm Greybull Capital in a move that will save more than 4,000 jobs, the company has confirmed.
The sale covers several UK-based assets including 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 mill in northern France.
Greybull is reportedly lining up a £400 million investment package to turnaround the plant
Bimlendra Jha, Executive Chairman of the stand-alone Long Products Europe business, said the deal marks a "significant milestone” in the sale of the Long Products Europe business.
“This sale is the best possible outcome for employees who have worked relentlessly to ensure the business’s survival, and helped to make it attractive to a potential buyer,” he said.
Hans Fischer, Chief Executive of Tata Steel’s European operations, also welcomed the news.
"Under these current challenging market conditions in Europe with the soaring levels of imports from China, we are happy that Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK. This transaction will offer a future for the Long Products Europe business and its 4,400 employees in the UK,” Fisher said.
The deal is expected to be completed in eight weeks once a number of outstanding conditions have been resolved, including transfer of contracts, certain Government approvals and the satisfactory completion of financing arrangements.
Following completion of the deal, the business will trade under the name British Steel.
Greybull Capital has been in talks to buy the business for several months.
Marc Meyohas, Greybull partner, said: “We are delighted to have reached agreement for the acquisition of LPE, which we believe can become a strong business, with a highly skilled workforce and great potential.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments