British Steel 'ended year in profit' says new owner

Steel worker cutting metal Image copyright Steve Morgan/British Steel
Image caption The firm produces more than 2.8m tonnes of steel a year

British Steel ended 2016 in profit after securing a series of "significant" contracts.

The company, bought from Tata by investment fund Greybull, said it was on track to deliver sustainable growth.

The Scunthorpe-based business said deals had been struck to supply steel for the construction of Hinkley Point nuclear power station and rails for the Algerian and Italian train networks.

A 3% pay sacrifice made by staff after the sale is planned to be returned.

Tata announced the sale of its plant in April, with the move safeguarding more than 4,000 jobs.

For the deal to be sealed, workers were asked to accept a pay cut and less generous pension arrangements.

Image copyright PA
Image caption The firm, based in Scunthorpe, also has sites in Cumbria, North Yorkshire and Teesside

Roland Junck, British Steel's executive chairman, said: "I'm pleased to report that after our first seven months of trading, we are building on our promising start to life as British Steel.

"We're already making good progress with significant contract awards from both new and existing customers across the globe."

The return of the 3% salary sacrifice is expected to be implemented for employees in June.

British Steel also has sites in Cumbria, North Yorkshire and Teesside.

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