British Steel 'back in profit' 100 days after brand revival

Steel produced in Scunthorpe is now being made at a profit only 100 days after the British Steel brand was revived

The company which revived the British Steel brand says it is on track to return to profit this financial year after being sold by India's Tata Steel.

Investment firm Greybull Capital bought Tata's Long Products Europe division in Scunthorpe for £1 in April.

Executive chairman Roland Junck said: "We have... returned the business to profitability in our first 100 days as an independent company.

"These results are testament to the hard work of our employees."

He said the company had completed the first stage of its turnaround plan which includes efficiency and cost-cutting measures, 270 new employees and a £50m capital investment.

'Many challenges'

The firm, with 4,800 employees, produces more than 2.8m tonnes of steel every year and has been working with new and existing customers, including Caterpillar, Toyota and Network Rail.

As well as its steelworks in Scunthorpe it has sites in Teesside, Workington and York.

"The transformation of our business will make sure we maintain the pace of growth and move forward as an outward-looking profit-making business," Mr Junck said.

"But while our future remains firmly in our hands, the UK steel industry still faces many challenges."

The industry was at a disadvantage compared with European rivals and Britain's decision to leave the European Union had not made things any easier, he said.

"There are differences which handicap the UK in terms of business rates, energy prices. If I had this plant in Germany we'd be in a much better condition."