Tata Steel has announced that it has sold its Long Products Europe business, which includes its Scunthorpe plant, to Greybull Capital for a token £1.
The sale will prevent more than 4,000 job losses at the plant, but the the UK-based investment firm will ask workers to accept a 3% pay cut and reduced pension contributions as part of a two-year plan to turn-around the ailing business.
Alongside the Scunthorpe works, Greybull Capital will also take over two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, a mill in Hayange, France, and various sales and distribution facilities across the UK.
The deal is expected to complete within the next two months, after which Greybull will rebrand the company “British Steel”.
