Steel producer hits key profitability targets

British Steel, the newly-formed steel manufacturer, has announced that it is on track to return to profit for the financial year ending 31 March 2017.

The company, launched on June 1, is said to be on course to complete its return to sustainable growth, after successfully implementing the first stages of its turnaround plan.

In addition to efficiency and cost saving initiatives, £50M of capital investments have been committed for this financial year. This investment has been focused on several major projects to improve competitiveness and broaden the offering to customers that include steelwork contractors, and manufacturers such as Caterpillar and Toyota.

British Steel Executive Chairman Roland Junck said: “I am delighted to be able to announce that we have hit our performance targets and returned the business to profitability in our first 100 days as an independent company.

“I believe we are now better placed to capitalise on our strong heritage, vastly experienced and skilled workforce and world-class products. The transformation of our business will make sure we maintain the pace of growth and move forward as an outward-looking profit-making business. But while our future remains firmly in our hands, the UK steel industry still faces many challenges.

“That is why we are pleased to remain in constructive dialogue with the Government about the strategy needed to support British Steel and ensure that it is operating on a level playing field.”