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Scunthorpe steel works sold to investment firm overnight

The sale of Tata Steel's Scunthorpe plant to an investment company has been completed overnight.

Greybull Capital now owns Tata Steel's Scunthorpe plant and its Long Products Europe business - which includes a design consultancy in York.

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Unions welcome Scunthorple steelworks sale

The steelworkers' union Community has welcomed the completion of the sale of Tata Steel's Long Products Europe business to Greybull Capital LLP. The new company will trade as British Steel.

"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.

"British Steel is built on firm foundations with a skilled, experienced and dedicated workforce determined to make a success of the business. They have a proud track record of delivering high-quality long products to flagship construction and infrastructure products around the world. The turnaround plan agreed between management and unions is already yielding positive results.

"I want to pay tribute to Community's local union reps not just in Scunthorpe, but at Lackenby, Skinningrove and throughout the downstream operations. Their hard work and commitment to a sustainable future for steel has been key in getting us here today. Our members have also shown their commitment by the sacrifices they have made to back the plan and give the new business the best chance of success.

"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."

– Community's General Secretary, Roy Rickhuss

Thousands of jobs saved in Scunthorpe

Tata Steel in Scunthorple becomes British Steel today Credit: ITV News

From today Tata Steel's 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.

“As a responsible seller, Tata Steel is delighted to have secured a buyer for this business and we hope that under Greybull 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".

– Mr Bimlendra Jha Executive Chairman of the Long Products Europe business and CEO of Tata Steel UK

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Javid 'wary of precedent' amid Tata pensions consultation

Business Secretary Sajid Javid has confirmed the Government is set to launch an "open consultation" on changes to pensions law as part of efforts to save Tata Steel despite being "very wary of setting a precedent".

The consultation, which will run until June 23, sets out a number of different options for the British Steel Pension Scheme and its 130,000 members.

The scheme includes 14,000 people currently employed by Tata or another employer, 32,000 are deferred (no longer employed by Tata but below the scheme's normal pension age) and 84,000 pensioners.

Business Secretary Sajid Javid confirmed in the House of Commons details of the Tata consultation.

The Government has been warned against the impact of setting a precedent by seeking to change pension law.

"No decision (on Tata's future) has been made," Mr Javid told MPs. "We are very wary of setting a precedent ... this is very much about this scheme and this scheme only in these very unique circumstances."

Shadow business secretary Angela Eagle warned against cutting the fund's long-term liabilities by benchmarking it to the consumer price index (CPI) rather than the higher retail price index (RPI), saying: "This change is currently illegal."

  1. National

Steel trade unions welcome Tata pension law consultation

The steel trade unions have welcomed the Government's consultation on changes to pensions law as part of efforts to save Tata Steel and called on the company to uphold its "legal, social and moral responsibilities" to steel workers.

In a combined statement, Community, Unite and GMB endorsed the move to avoid the "unmitigated disaster" of the British Steel Pension Scheme (BSPS) going into the financial safety net of the Pensions Protection Fund (PPF) with a sale of Tata's assets.

It is important that all stakeholders continue to explore all available options that avoid the need for the scheme to go into the PPF, which would be the worst deal for scheme members.

It is important to remember that Tata Steel remains the employer and sponsor of the BSPS. They have significant legal, social and moral responsibilities with regards to the British steel industry and those men and women who have worked and continue to work within it.

– Community, Unite and GMB
Steel unions said they would continue to be 'led by our members' in the industry. Credit: PA Wire

The Human Resources director for Tata Steel's European operations said the consultation would enable a "better outcome" for the vast majority of members of the BSPS.

We welcome the inclusion of an option to change the way that future payments in the scheme are increased. This option, which is fully supported by the pension scheme's trustees, provides a way for the scheme to continue to operate on a well-funded, low-risk basis indefinitely.

The British Steel Pension Scheme was set up on the basis that pension increases would be provided so long as they remained affordable. The proposed legislative changes would allow this unusual rule to operate as intended. That means it's unlikely that a regulatory change would affect other final salary pension schemes.

– Tor Farquhar, Human Resources director for Tata Steel's European operations

Government prepares financial package for steel industry

After weeks of uncertainty there have been major developments today over the future of Tata Steel. The Government says it's preparing a financial package worth hundreds of millions of pounds for any potential buyers.

Steel expert Roger Maggs, who is heading the consortium, welcomed the intervention.

But Phillip Booth, Editorial and Programme Director at the Institute of Economic Affairs, thinks the Government shouldn't be using tax payers' money in this way.

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