Greybull purchase of the Scunthorpe steel plant

Phil Black - PII Editor 12/04/2016

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April 11^th 2016- Commenting on the Greybull purchase of the Scunthorpe steel plant, Gareth Stace, Director of UK Steel, said:

“This is clearly good news for the British steel sector, and I hope it will provide a much needed boost for steelmaking in the UK. However, while very welcome it does not mean that we are out of the woods yet. A long term investor is needed, in the very short term, for the remainder of the whole of the Tata Steel UK business, including Port Talbot. We must also remember that the crisis that we are in is not confined to just the Tata Steel businesses, but the sector as a whole.

“In order to help make the Long Products Europe business a success, as well as the steel companies across the UK, we still need government to pull all levers, push all buttons and take every action possible to ensure British steel can once again complete on the global market place. This includes pushing the European Commission to continue its steel dumping investigations ensuring that tariffs are set at an appropriate level.

“We would also like to see more Government action to bridge the gap on electricity cost with competitors, business rates and to provide direct financial assistance to steel companies to further improve both energy efficiency and also productivity, are all measures that will help our sector fairly compete.

“We need to remember that the intention to sell the Long Products Division was announced two years ago, which demonstrates that these complex deals take time and therefore requires patience on all sides, to see them through to a successful conclusion. Government must be prepared to provide time limited, life support to our sector. Without this, the future of steelmaking in Britain could be limited.”

April 11^th 2016 – GMB WELCOME DEAL TO SELL SCUNTHORPE PLANT TO GREYBULL CAPITAL

Our members must be congratulated for their pure determination in campaigning over the last 2 years. Their efforts were a major factor in the success of the sale says GMB

GMB, the union for workers in the steel industry, commented on the announcement from Tata Steel UK that it had signed an agreement to sell its Long Products Europe business to Greybull Capital, including its Scunthorpe plant. (See notes to editors for a copy of Tata’s press release and GMB press releases on Tata’s sale).

Hans Fischer, Chief Executive of Tata Steel’s European operations, said the agreement would “offer a future for the Long Products Europe business and its 4,400 employees in the UK”.

Dave Hulse GMB National Officer says “These have been really difficult times for GMB members over many months of uncertainty. GMB welcomes the announcement that Greybull Capital has reached an agreement with Tata Steel that safeguards our members’ jobs, especially given the recent announcement that Tata will sell its entire UK operation.

The joint trade unions have been in negotiations over a long period of time, looking at temporary agreements to make sure that the first 12 months of the sale are successful. Our members must be congratulated for their pure determination in campaigning over the last 2 years. Their efforts were a major factor in the success of the sale.”