Two UK bros reviving British Steel brand to buy out Tata plant
Two little-known financier brothers of a UK-based investment firm are finalising a deal to revive the ‘British Steel’ brand name to buy out part of Tata Steel’s plants in the UK, a media report said on Monday. Marc and Nathaniel Meyohas, the brothers behind investment firm Greybull, are putting the finishing touches to buy the Scunthorpe steelworks in the east of England from the Indian conglomerate, according to The Daily Telegraph. Greybull plans to pump in 400 million pounds into the struggling plant, saving a total of around 9,000 local jobs.
Scunthorpe, one of the country s largest facilities and one of 12 Tata steel sites across the UK, makes specialist steel products including wire rods, steel beams and track for the building and rail industries. The news came as steel unions in the country called on Prime Minister David Cameron to personally intervene in the ongoing emergency talks in London to save Britain steel industry from collapse. Unite union assistant general secretary Tony Burke said if the industry was “to be given a fighting chance then the government and Tata need to come clean on their intentions and prior discussions, because so far all we’ve had is more questions than answers”.
He said, “The apparent lack of urgency from Sajid Javid and absence of a clear plan from the government is disturbing for the tens of thousands whose livelihoods hang in the balance and deeply troubling for British Steel’s 140,000 pensioners.”
Roy Rickhuss, leader of the Community union, said: “By now, no-one underestimates the scale of the challenge we face. We have an entire industry to save and not a lot of time to save it. “We must also ensure that we hold Tata to a commitment to be a responsible seller and honour its moral and social duties to UK steel communities.” UK business secretary Sajiv Javid is also set to meet Tata Steel s Chief Financial Officer (CFO) in relation to the group s plans to exit the UK steel industry. Business department minister Anna Soubry is due to visit Rotherham steelworks later on Monday. Meanwhile, Indian-origin tycoon Sanjeev Gupta, founder of commodities firm Liberty House, has had initial talks over a potential purchase of the Tata Group s South Wales plant.
Liberty House said the talks had been “encouraging” and “positive” and described the response of ministers as “pro-active” and “keen to find solutions.” Gupta is set to return to London from Wales this evening to continue the negotiations. Tata Steel announced last week it was selling its loss-making UK businesses and would close its plant at Port Talbot unless a buyer is found.
The company directly employs 15,000 workers in the UK and supports thousands of others, across plants in Port Talbot, Rotherham, Corby and Shotton. Britain s steel industry has been thrown into crisis by a combination of cheap imports from China, falling global demand, high energy prices and a tougher tax regime than many rival nations.