British Steel in a strong position for 2017

British Steel has announced that it ended the third quarter of 2016 in profit following its first seven months of independence, and it now starts the new year in a strong position.

The company, launched on 1 June 2016, said it continues to make progress against its turnaround plan and remains on track to build a business capable of delivering sustainable growth.

With the continued implementation of its turnaround plan the business is on track to continue its growth in a competitive global market through a combination of both further cost efficiencies and continued investment.

The company has secured a series of significant contracts with long-term and new customers, including a £2M contract to supply steel for accommodation blocks at Hinkley Point.

During the reporting period, British Steel has committed £39M in capital expenditure and made several significant investments including £1.8M in scale removal at the Skinningrove site.

British Steel’s Executive Chairman Roland Junck 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.

“Having implemented the first stage of our turnaround plan, returning the business to profit and putting it on a sustainable footing, we are now well positioned to implement the next stage of the plan. This will be focused on ensuring tactical growth of both our business and brand which we see as crucial next steps in our strategy. We’re already making good progress with significant contract awards from both new and existing customers across the globe.

“Domestically we are in a unique position to provide large quantities of steel for developments throughout the UK, whether that be major infrastructure projects such as HS2 and Heathrow or smaller projects, such as the building of new schools or hospitals.

“It is therefore heartening to see positive steps by the Government over public procurement and the steel pipeline, two policies which should lead to more British Steel products being used in even more projects throughout the UK.”