The firm has been struggling with the weakness of the pound since the EU referendum in June 2016 and the escalating trade US-China trade war.
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British Steel is on the brink of administration, putting close to 25,000 jobs at risk.
Britain’s government will leave “no stone unturned” to support the country’s steel sector amid the crisis facing producer British Steel and it has been in contact with former owners Tata Steel, a minister said on Tuesday.
The UK’s second-biggest steel maker had been trying to secure £75m in financial support to help it to address “Brexit-related issues”. But, as first reported on Sky News, the request for emergency support from the government has been reduced to about £30m.
If last-minute talks fail to secure a solvent deal, British Steel’s collapse could result in more than 4,000 redundancies at its giant Scunthorpe steelworks.
As many as 25,000 more jobs in its supply chain may also be jeopardised by the crisis.
The final deadline for a deal is this afternoon. British Steel’s lenders and directors have agreed to place the company into administration tomorrow if this is not met.
In a statement, the Department for Business, Energy and Industrial Strategy (BEIS) said: “As the business department, we are in regular conversation with a wide range of companies.”
Along with administration, nationalisation or a management buyout are being discussed as fall-back options for the company.
Company sources said that the direction of talks with the government would become clearer in the coming hours.
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HeadlineBritain’s government will leave “no stone unturned” to support the country’s steel sector
Short HeadlineUK will leave no stone unturned to help steel sector
StandfirstBritain's second-largest steel producer is on the brink of collapse amid growing signs that an emergency government loan would fail to materialise.
British Steel is on the brink of administration, putting close to 25,000 jobs at risk.
Britain’s government will leave “no stone unturned” to support the country’s steel sector amid the crisis facing producer British Steel and it has been in contact with former owners Tata Steel, a minister said on Tuesday.
The UK’s second-biggest steel maker had been trying to secure £75m in financial support to help it to address “Brexit-related issues”. But, as first reported on Sky News, the request for emergency support from the government has been reduced to about £30m.
If last-minute talks fail to secure a solvent deal, British Steel’s collapse could result in more than 4,000 redundancies at its giant Scunthorpe steelworks.
As many as 25,000 more jobs in its supply chain may also be jeopardised by the crisis.
The final deadline for a deal is this afternoon. British Steel’s lenders and directors have agreed to place the company into administration tomorrow if this is not met.
In a statement, the Department for Business, Energy and Industrial Strategy (BEIS) said: “As the business department, we are in regular conversation with a wide range of companies.”
Along with administration, nationalisation or a management buyout are being discussed as fall-back options for the company.
Company sources said that the direction of talks with the government would become clearer in the coming hours.
