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.

[Cronos]

The UK’s steel industry can’t compete in terms of size or resources with the US, China, Russia or India

[mewzilla]

FWIW, for once I wouldn’t blame the ChiComs.

I think the EU is conducting an economic embargo.

With the quiet acquiescence of the May government.

Now we’ll see if Brits are men or mice.

[shoff]

I thought as much

[central_va]

It why they need tariffs.

[mewzilla]

Steel is a national security issue, though, to my mind, which means you bust your butt to ensure it doesn’t go belly up.

The screws are being put to the UK’s steel industry in an attempt to extort the British public.

[Cronos]

Strangely enough they do have tariffs and they were ratcheted up this year following President Trump's tariffs on China

[Cronos]

The UK’s steel industry has been ailing for decades now. They are grossly inefficient.

[Hyman Roth]

Great album

[Cronos]

[sinsofsolarempirefan]

He was absolutely right. Our treacherous ruling class have kept us in and we are subsequently still bound by EU regulations preventing state intervention to save ailing, yet strategically vital industries. Had we left 3 years ago, this might have been avoided.