Barrett Steel, the largest steel stockholder in the UK, has today (12 February) confirmed its intentions to purchase a number of British Steel UK distribution centres
The High Court placed British Steel into compulsory liquidation on 22 May 2019. Despite its liquidation, it continued to trade and supply its customers.
Barret Steel intends on acquiring a number of British Steel’s distribution centres immediately upon the sale to Jingye.
Barrett Steel hopes to secure the Metal Centre sites, including:
Barret Steel also aims to acquire offices in Cheadle and Edinburgh.
Barrett Steel is currently awaiting the sale of British Steel to be finalised. Discussions are continuing, but it has clarified that the sale between Jingye and Barrett’s will only be completed once the sale between British Steel and Jingye is confirmed.
On 11 November Jingye said that it planned to invest £1.2bn into the company over the next decade. The deal is expected to save up to 4,000 jobs and end the uncertainty surrounding the future of British Steel.
Completion of the sales contract is conditional on a number of matters, including gaining the necessary regulatory approvals. The parties are working together to conclude a sale as soon as reasonably practicable.
Roy Rickhuss, general secretary of the steelworkers’ trade union Community, said: “Jingye are not just potentially acquiring a steel business, they would be taking on a dedicated and skilled workforce, who even through the uncertainty of recent months have been breaking production records to give the business a chance.”