British Steel to go into official receivership affecting thousands of jobs

The future of British Steel, owned by Greybull Capital, has been in turmoil throughout this month, including for Tata Steel which owns plants in Llanwern and Caerphilly, along with a huge facility in Port Talbot. 

It was now been announced that British Steel – the country’s second-largest steel producer – will go into receivership, following concerns that the company could go into liquidation.

READ MORE: More turmoil for the steel industry, with thousands of jobs at risk

The move threatens more uncertainty for thousands of workers at the company's plants, mainly at Scunthorpe where more than 4,000 are employed.

The general secretary of the Community trade union, Roy Rickhuss, said: "This news will heap more worries on workers, and everyone connected with British Steel but it will also end the uncertainty under Greybull's ownership and must be seized as an opportunity to look for an alternative future.

"It is vital now that cool heads prevail, and all parties focus on saving the jobs.

"In these very difficult circumstances we know the workforce will continue to fight for the business as they have done for so many years.

"We would urge the management, contractors, suppliers and customers to support them in that fight for the future."

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Greybull Capital had been seeking financial support from the Government, saying it faced several Brexit-related issues.

Unite assistant general secretary Steve Turner said: "Despite today's announcement to place British Steel into official receivership, Unite will continue to engage all parties in the fight to secure the future of the company.

"We are clear that the Government must now step up and step in and bring British Steel into public ownership until a buyer can be found to avoid an economic and industrial catastrophe.

"While Greybull cannot be allowed to walk away scot-free and must be held to account for its stewardship of Britain's second largest steelmaker, ministers cannot wash their hands of the Brexit farce and ongoing uncertainty that has placed the company in difficulty, nor allow a business of such strategic importance to UK plc to disappear like the steelworks of SSI several years ago.

"To do so would be a betrayal of a loyal workforce that has made great sacrifices to make British Steel a success and send economic shockwaves throughout the steel industry, UK manufacturing and the households of 20,000 workers in the supply chain who rely on the steelmaker for their livelihoods."