British Steel to spend £50m upgrading its Scunthorpe mill

The business, created in 2016 when investment firm Greybull acquired assets from Tata Steel for a nominal £1, will spend £50million upgrading its rod mill at Scunthorpe, Lincs, to be commissioned in autumn 2019.

Turnover increased by £200million to £1.4billion last year, while pre-tax earnings were £68million excluding a £47million hit from a blast furnace problem, for which it is pursuing an insurance claim.

Executive chairman Roland Junck said: “Our transformation remains firmly on track and continues apace with unprecedented levels of investment going into the business.

“Increased raw material costs and fluctuating steel prices continue to be a challenge. It’s important safeguarding action is taken to prevent the dumping of cheap steel into Europe following the imposition of steel tariffs by the US.

“However, we remain in positive talks with the Government, and our other stakeholders, and are confident about our future.

“We continue to invest in our people and products, remain focused on reducing the cost of liquid steel and are growing into new markets across the globe.

“With the support of our employees we’ve achieved a great deal in a short space of time.”

British Steel also has sites across the UK and Europe including the Redcar and Immingham Bulk Terminals.