British Steel turnaround a positive sign for future of UK steel

Redcar MP, Anna Turley, has today welcomed the success of British Steel which has returned to profit and secured a number of significant contracts.

The company, purchased from Tata by Greybull last year, has reported that it ended the third quarter of 2016 in profit.

They have also announced a number of major contracts, including a £2 million agreement for supplying steel to the Hinkley Point power station and rail track contracts in Algeria and Italy.

At the height of the steel crisis, staff at the company agreed a temporary 3% salary cut as part of a deal to save the business. British Steel have announced they plan to reverse this cut in June 2017.

The business operates at a number of sites across the country including Teesside Beam Mill at Lackenby and Special Profiles at Skinningrove.

Responding to the positive news, Anna said:

“It is great to see that under new ownership and the return of an iconic steel brand, British Steel are making great progress in returning the business to a sustainable footing. They are not only back in profit but securing important contracts and investing in the next generation of steelworkers which is brilliant.

“The success is testament to both the new leadership and to the skills and the determination of the workforce who have worked hard to turn the business around. It is particularly good to hear the salary sacrifice is set to be reversed in the not too distant future.

“To continue this trend, securing contracts in major infrastructure projects like HS2 and Heathrow is crucial; as is addressing the competitive disadvantage UK steel has against our competitors. The Steel 2020 report we launched in Parliament this week set out a number of recommendations to the Government to address these issues and secure the future of steel.

“In British Steel the steel industry still has a stake in Teesside providing many skilled jobs, and we have the potential to develop other steel processes through the work of MPI at South Bank. The progress so far shows that with the right support and the right leadership, our steel industry in this country can have a bright future.”

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