It has been announced that British Steel has gone into compulsory liquidation. The company continues with business as usual while the Official Receiver looks for a buyer. The appointment of the Official Receiver creates a period of stability while a new buyer is sought for the trading business. BCSA’s first thoughts are with British Steel employees. We are hopeful that this key part of the UK’s proud industrial heritage can be saved.
The UK structural steelwork sector is in good shape. Demand for structural steelwork is steady, and UK steelwork contractors have the capacity and capability to deliver the future pipeline of work.
The UK has an efficient and mature stockholder and distribution sector, and steel stocks in the UK remain healthy as stockholders had already been preparing for a no deal Brexit.
The Official Receiver has said that British Steel will continue to trade as normal; taking orders, producing steel and despatching while they look for a buyer. Notwithstanding the current challenges, British Steel continues to be a key supplier to the UK construction sector and the company could return to profitability and have a long-term future should a buyer be found, or necessary funding be secured.
The major European mills supplying steel to the UK, along with other high quality international mills, have the capacity to fully service the needs of the UK structural steelwork market, if required. There are also other UK steel mills producing a variety of other products for the UK construction sector.
The structural steelwork sector and its supply chain will continue to offer the construction sector the high level of service they expect.