British Steel collapses, putting thousands of jobs at risk

CNN ^ | 5-22-2019 | Ivanna Kottasova

[tcrlaf]

Britain's second-biggest steel maker collapsed on Wednesday, putting about 5,000 jobs at the company directly at risk, and threatening another 20,000 at suppliers.

The company was seeking a government bailout, but talks ended without agreement. The High Court ordered the company into compulsory liquidation, according to the government's Insolvency Service.

British Steel was reportedly seeking a government loan of £75 million ($95 million) to cover losses it said it suffered because European orders had evaporated due to the uncertainty surrounding Brexit.

"Unable to decipher the trading relationship the UK will have with its biggest market in just five months' time, planning and decision making has become nightmarish in its complexity," UK Steel, the industry's trade association, said in a statement.

British Steel, which had already been granted a government loan of £120 million ($152 million) last year, was bought by investment firm Greybull Capital from India's Tata Steel in 2016 for just £1.

[tcrlaf]

The Union and the writer blame Brexit, but it is OBVIOUS that this has been coming for years. Then, at the bottom of the article, it mentions competition from cheap Chinese steel....

[DanielRedfoot]

CNN?
i wonder if any of this is true?

[moovova]

That’s a lot of new coders.

[frogjerk]

[ryderann]

How much money did it lose by catering to muslim employee demands?

[x]

We're only making plans for Nigel
He has his future in a British steel
We're only making plans for Nigel
Nigel's whole future is as good as sealed

I guess not ...

[Oscar in Batangas]

Dummies.

Should have BRexitted when it passed. This would already be behind you.

[eyeamok]

You would think they would be Thrilled at the amount of Deadly Greenhouse Gasses will be greatly diminished if the Steel Plant closes, they will have Saved the Planet!

[Spktyr]

So much for Nigel and his future in a British Steel. (XTC reference, nothing to do with Farage.)

[MplsSteve]

Yep, that’s what I was thinking too!

[Mariner]

British Steel!

https://www.youtube.com/watch?v=O4ujW3oe_BQ

[Flash Bazbeaux]

Nigel was the first person I thought of, but I’m thinking he might be retired and drawing his pension my now.

[wally_bert]

Exotic male (or whatever) dancers ala full monty.

[Eric in the Ozarks]

Maybe Tata will buy it.

[Tijeras_Slim]

If you’re the 2nd largest steel maker in a country and your workforce is 5000, there’s bigger problems.

[Sirius Lee]

If you’re the 2nd largest steel maker in a country and your workforce is 5000, there’s bigger problems.

Agreed. It's the industrial equivalent of a hobby farm.

[Cobra64]

Yup. The Chinese have huge surplus steel-making production and dump millions of tons worldwide.

[DickBrannigan]

First thing I thought of when I read the headline....

Showing my age.

[Cronos]

European orders had evaporated due to the uncertainty surrounding Brexit.

The company was turning around, but the final nail in the coffin was the Brexit uncertainty. It wasn't the single bullet that killed british steel, but it was one of the bullets.

[central_va]

Oh Brexit is good thing otherwise the globalist would not be using fake scare tactics.