Thousands of steelworkers have been granted a 5% stake in British Steel after the Scunthorpe steelworks, one of only two left in Britain, returned to profit.
British Steel was re-formed last June when investment firm Greybull bought Tata Steel’s long products business, which is primarily the Scunthorpe steelworks, for £1 and renamed it. The British Steel name disappeared in 1999 when it merged with a Dutch rival to become Corus. The company was later bought by Tata Steel.
British Steel said its operations had made a profit of £47m for the year to 31 March, compared with a £79m loss in the previous financial year when it was still owned by Tata Steel. Roland Junck, executive chairman, said the turnaround had been “remarkable”.
The company employs 4,800 people. Employees were asked to take a 3% pay cut when Greybull bought the business but this has now been reversed. The workers will also receive a 5% stake in the business.
Tata Steel offloaded the Scunthorpe site as it battled to stop mounting losses in its UK operations. The Indian company still owns the steelworks at Port Talbot, home to the only other blast furnaces in Britain.
British Steel has supplied all the rail for the Crossrail project in London. It also supplies high-strength wire rods for deepwater mooring and steel for construction projects such as the new stand at Liverpool’s football stadium, Anfield.
No comments:
Post a Comment