A late expression of interest in British Steel has been submitted to government by a consortium of 海角视频 and West African investors.
It comes as the Official Receiver is understood to be close to selecting a preferred bidder for the crisis-hit business, revealed to be £880 million in debt back in May.
Greybull’s three year run at the helm of the Scunthorpe-headquartered business was then swiftly brought to an end in the High Court, with specialist advisers from Ernst & Young appointed by the Official Receiver.
Remaining anonymous at present, a spokesman representing the group has told how one of the parties is a leading British construction and civil engineering company operating in West Africa, opening up a direct long-term export opportunity.
While the specialist team heading up affairs on behalf of the Department for Business, Energy and Industrial Strategy have expressed a desire for the entire British Steel entity to be taken on – with plants in the North East as well as North Lincolnshire – the consortium appears to be focused on the Scunthorpe works.
In a statement, the spokesman said: “The consortium believe that the future of British Steel is best served under long term British ownership who in turn would have the local workforce at the top of their agenda.
“The consortium is working on a long-term massive infrastructure project in West Africa. The successful purchase of the Scunthorpe site would mean an export opportunity of steel to this project - with immediate effect. British Steel would be used to fully deliver the project and associated works. The project has an estimated 10-year delivery timescale and has multiple related additional export opportunities for British steel to the region.
“The consortium has been considering other operations around Europe to facilitate the quality and quantity of steel required and believe this is by far the best fit, with Scunthorpe able to provide the highest quality product, and with resulting benefits back to the company, and the area.”
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The spokesman said it was understood state financial assistance was not available or would it be sought - although Sky News has reported a £300 million package may be on the table for a successor - adding: “The closing of the steel works would not only lose a century-old set of skills, but decimate the town and surrounding area, including all the businesses in the supply chain. The benefits to all concerned in this deal will be realised for many decades to come.”
Potential bidders were asked to reconfirm interest in mid-July, with multiple parties then in the running. It has been reported that Erdemir, a Turkish steelmaker backed by the country’s military pension fund, is currently believed to be the front-runner to take over.
International industrial group Liberty House, with strong interests in and close to Scunthorpe and a 海角视频 chief executive who was a former leader there, is also reported to be interested.
Network Rail has also tabled an ‘insurance’ bid for the rail section in Scunthorpe, as it seeks to safeguard supply of track. British Steel holds rail contracts with several national networks in Europe.
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