We have summarised recent developments and stories relating to steel news in the UK, including the impact of Brexit on steel production, new contracts with British businesses and key developments from Yorkshire.
British Steel Updates
-Following British Steel’s collapse in May 2019, the company’s future has been uncertain. However, since then, Ataer Holdings (the investment arm of Oyak) has been picked as British Steel’s preferred buyer. It plans to complete its purchase of British Steel by the end of this year, pending due diligence checks.
-Anna Turley, Labour MP for Redcar, has said that business is continuing as usual at British Steel, and that their priority is selling the business as quickly as possible.
-TSB Projects, a subsidiary of British Steel, has been bought by a French-owned company. The purchase has preserved 400 jobs in York.
-TSP Projects, an infrastructure design company in York, has been sold to Systra Ltd, a subsidiary of the French-based Systra Group. The sale has doubled the consultancy’s workforce in the UK and Ireland. The news was announced by the official receiver, who has managed British Steel since its collapse.
Brexit and UK Steel
-The steel industry is concerned that a no-deal Brexit will cost it £40 million every quarter, as a result of tariffs on EU exports. Goods made in Britain are expected to attract steel duties of 25% if the UK leaves the bloc without an agreement this month.
-According to UK steel companies, the UK may need to draw upon steel quotas designed for ‘minor exporting nations’ if there is a no-deal Brexit.
-As a result of safeguards finalised by Brussels earlier this year, a levy on steel comes into effect on EU exports once a certain quota is breached.
Liberty Steel have new contract in the pipeline
-Liberty Steel (a company located in Hartlepool) have secured a contract for an offshore Saudi Arabian development. The company will produce over 16km of steel pipe as a result.
-The contract is with Saudi Aramco, the world’s biggest oil and gas company by revenue, and will expand their Marjan field. It is the first major contract from the Middle East since Liberty’s acquisition of Hartlepool’s steel mills two years ago.
-The offshore linepipe is due to be delivered in 2019’s final quarter. Liberty hopes the contract will lead to further opportunities in the Middle East.
Hadley Group launches gauge galvanised steel framing system
-Hadley Group are presenting their light gauge galvanised steel framing systems at the 2019 Modular Matters exhibition. The framing system is suitable for many different construction applications.
-Light steel framing (such as Hadley Group’s) is useful for offsite construction projects, including hotels, hospitals, student accommodation, housing and commercial offices. It is an important addition to both offsite and modular markets.
-The exhibition takes place at the National Conference Centre in Birmingham on Tuesday the 22nd of October. It shows how volumetric modular technology can be used across many different markets, including education, leisure, residential and specialist applications.
Yorkshire Steel News
Despite wider concerns in the UK, several Yorkshire steel companies are expanding their businesses and product offerings.
Bromford Iron & Steel has new owner
–Bromford Iron & Steel (located in West Bromwich) has been bought by the Yorkshire-based All Steels Trading.
-Bromford produces hot rolled long products; their steel is used in horseshoes and chains, as well as the oil and gas sectors. It employs 38 people at its premises in Oldbury. All of these jobs have been preserved following the acquisition.
–Laurence McDougall, Managing Director for All Steels Trading, said the acquisition would be a good addition to their other businesses, particularly their rolling mill in Wolverhampton.
Harry Peers & Co. gets new owner
-Bolton steelwork business Harry Peers & Co. has been bought by Severfield—the UK’s largest structural steel specialist—in a £30 million deal.
-The deal will allow Severfield to expand into relevant market sectors such as the nuclear industry, process industry and power generation. Severfield will also benefit from Harry Peers’ capability in modular structural steel offerings, while Harry Peers will benefit from new European contract opportunities and investment in technology-driven enhancements.
-Severfield’s acquisition allows it to do more business in the UK’s nuclear sector, which is forecasted to grow through the UK Government’s decommissioning investment programme.
Barrett Steel buys John Parker & Son’s Shoreham facility
-Barrett Steel Limited (a stockholder based in Bradford) have bought the Shoreham facility of John Parker & Son. The move has brought the facility out of administration.
-The depot, located on the coast of Sussex, is now the 27th location in Barrett Steel’s network. 50 Parker employees will transfer to Barrett, while the acquired site will now operate as Barrett Steel Shoreham.
-As a result of the acquisition, Barrett Steel now has a dedicated bulk receipts port facility and extensive processing equipment.
Although there is some future uncertainty, this recent steel news from the UK contains several success stories that indicate it will do well over the next few years.
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