British steel giant British Steel about the head

b1c2cfb980666c21ffa71aebb2fe2920 - British steel giant British Steel about the head

The British steel giant British Steel, which is five thousand people employed, is bankrupt. It is a new blow for Theresa May, who is also on her last days as prime minister seems to be busy.

The British Supreme court has the second largest steel producer of the United Kingdom in a procedure of forced liquidation is placed, the British government Wednesday officially announced. There is a trustee appointed to the various options for the activities to be examined. In the meantime, keep the factories running and keep people at work.

Earlier became known that British Steel in difficult financial paper wrong. There was a reference to the uncertainty triggered by the high prices of raw materials, but also by the Brexit.

The news comes at the worst possible time for premier May. These days take them a wanhoopspoging to her Brexit deal is still by the house of Commons. When they sat afternoon questions answered from that house of Commons, she was also the bankruptcy of British Steel for the feet cast. So accused Labour the Conservative Party of British industry have neglected ‘while they argued about the Brexit’.

‘The legacy of the Conservatives will consist of industrial decay, and that while they endlessly bekvechtten about the European Union, ” says Labour in a press release. The social-democrats further penetrate to a nationalisation of the company.

State aid

The steel producer had the British government for a bail-out plan requested, but there was no agreement reached.

“The government can only act within the lines of the law. And who says that any form of financial assistance to a steel company a commercial basis must have’, said the British minister of Companies, Greg Clark. “I was advised that it would be illegal to a guarantee or a loan to provide against the conditions that were proposed.’

Steel for railway lines

At British Steel, working in a total of 5,000 people, it suppliers have another 20,000 employees in service. The company was in 2016 by investor Greybull for 1 pound taken from the Indian Tata Steel, which wanted rid of the loss-making branch.

The largest plant of British Steel in Scunthorpe, in the north east of England. There work according to the British broadcaster BBC about 3,000 people. They make mostly steel for the construction sector and for railways.

French office saved

The French ministry of the Economy, however, had to know that the factory of British Steel in Saint-Saulve in the north of France, not involved in the liquidation. The factory belongs to another part of the British group. The business plan of the French establishment is also not from the Uk, underlines the ministry.

British Steel, bought the Northern French factory has recently Ascoval. That was the past months is still a overnameprooi of the French-Belgian group Altifort, but those plans were made by the judge canceled.