Deal safeguards 4,000 Scunthorpe Tata steel jobs

http://www.bbc.co.uk/news/uk-england-humber-36015667

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A deal has been signed to safeguard more than 4,000 jobs at Tata's steelworks at Scunthorpe.

Greybull Capital, a UK-based investment firm, is to plough up to £400m into the plant - but workers must accept a pay cut and smaller pension contributions.

Paul McBean, of the union Community, said: "We didn't want to be in this situation at all. We wanted to carry on making the best steel in the world.

"We've had to make changes to give us a future, to give our town a future."

Unions at Tata's Long Products Europe works still have to vote to accept reduced pay and pension arrangements and the ballot does not close until 19 April.

The plant makes steel for the rail and construction sectors.

"To save this business this is the type of sacrifice we've had to do", said Mr McBean, lead representative of Community in Scunthorpe.

Roy Rickhuss, general secretary of Community, said: "There are still crucial steps to be taken to complete the deal and all parties involved need to retain their focus towards achieving the objective of securing the future of Long Products Europe."

'The future is bright'

Martin Foster, Scunthorpe convenor of the Unite union, said Greybull Capital could rename the firm British Steel and he is happy to see the name return.

He said: "The future is bright and it's going to be British Steel, which is brilliant. We're hoping to see further investment to make us more efficient and I'm sure that will come."

Tata said it sold the Scunthorpe operation for a "nominal consideration" in exchange for Greybull Capital "taking on the whole of the business, including assets and relevant liabilities".

Hans Fischer, chief executive of Tata Steel's European operations, said there were "challenging market conditions in Europe" and "soaring levels of imports from China".

"Tata Steel UK and Greybull Capital have entered the final stage of completion of the sale of shareholding in Longs Steel UK," he said.

Marc Meyohas, of Greybull, said: "I would like to thank Tata Steel, the trade unions and the British and French governments for their support, which was essential in ensuring the agreement."

Greybull describes itself as "a family office which makes long-term investments in private companies".

The London-based investment firm is run by financiers Marc and Nathaniel Meyohas and Richard Perlhagen.

Business Secretary Sajid Javid said the announcement "was a step in the right direction for the long-term future of British Steel manufacturing in Scunthorpe".

The Scunthorpe steelworks is a key part of Tata Steel's long products division, which was put up for sale in 2014.