British steel facing administration

[hobinfoot]

3 hours ago, Baron99 said:

The incredible fact that I've just heard on the BBC says it all.  China has produced as much steel in the past 2 years than Britain has produced in its entire history.  

 

Not saying its all quality steel products but in this day & age in our chuck away consumerism, if your product starts rusting after a few months, just throw it away & buy another cheap one rather than buy the expensive quality one. 

 

Manufacturers of course have their role to play but if we're happy as consumers to by cheap stuff, they'll be happy to manufacture their products from cheap steel & turn a bigger profit in to the bargain. 

I was totally amazed when I saw this statistic on the BBC last night.

[Magilla]

15 hours ago, ANGELFIRE1 said:

In a word yes.

Losing access to carbon allowances under the ETS is a direct result of the vote to leave.

 

Losing orders because the customers have no idea what tarrifs they'll have to pay on delivery is a direct result of the vote to leave.

 

You voted for it, you should take some responsibility!

 

15 hours ago, ANGELFIRE1 said:

They are flooding the market with "cheap" made steel and we cannot compete.

UK MEP's deliberately blocked any efforts to tackle Chinese steel dumping by the EU.

 

The UK is still a supporter of China’s quest to be granted "Market Economy Status", which will reduce any tarrifs in place even further.

 

There's no need to look to the EU to find fault here, this is UK government policy!

 

15 hours ago, ANGELFIRE1 said:

As the Government paid lord knows how many billions to keep the banks alive, surely they can pay a hundred million or so to keep our steel making alive.

Everyone stashes their loot in banks, not so much in steel foundries.

 

15 hours ago, ANGELFIRE1 said:

Close ALL our steelmakers down, and in the event of another war ever happening, where will our steel come from, - a steel tree.

LOL, you voted for it!

 

There were plenty of warnings both before and after the referendum about the problems it would bring to heavy industry... "project fear" wasn't it?

 

[nightrider]

19 hours ago, stillf said:

It isn't the carbon credit as they have already circa £120 million for this in the form of a loan from the government. They need another 30 million (down from circa 70 million) to keep going. 

Their overseas orders have dried up because customers. who agree contracts well in advance, don't know what kind of tariffs might apply in the future.

32 minutes ago, tinfoilhat said:

Oh the irony. From the reports I've read, orders are down because of brexit.

 

And you mention Chinese steel. The EU wanted to put tariffs on Chinese steel - we aren't the only ones suffering - and one country vetoed the whole thing.

 

Want to guess who?

I don't think its brexit per se, its the uncertainty as to what will happen in future with tariffs because we are unable to make a decision on what to do about brexit. If we had made a concrete decision on what to do and gone with it presumably it would be clear what tariffs to expect?

[Obelix]

19 minutes ago, hobinfoot said:

I was totally amazed when I saw this statistic on the BBC last night.

China makes about a hundred times the steel the UK does  - 75 million tonnes a month.... The UK makes about 800 thousand tonnes a month...

 

 

[the_bloke]

31 minutes ago, Magilla said:

UK MEP's deliberately blocked any efforts to tackle Chinese steel dumping by the EU.

This is a very simplified view. There are already numerous tariffs and restrictions in the EU on imported steel, of which the UK is bound by. None of those have saved British Steel. There were no new tariffs put forward which were vetoed that would have prevented the EU market being flooded with cheap China steel; the UK vetoed changing the limit on tariffs that could be applied through the 'lesser duty rule'.

 

The Labour government previously also vetoed the exact same changes.

 

Unless I am mistaken, we are still in the EU:

 

https://www.euractiv.com/section/economy-jobs/news/eu-toughens-anti-dumping-trade-powers/

 

Quote

Four years in the making, the compromise text will allow the EU to swiftly impose higher tariff penalties on imports manufactured at below cost, in line with methodology already used in the United States.

 

These 'tough new powers' by the EU were announced in 2017. None of which have saved British Steel.

Edited May 22, 2019 by the_bloke
Merge duplicates not merges :/

[bendix]

1 hour ago, Obelix said:

And it's just entered administration....

 

5000 jobs will go and 20k more in the supply chain.

 

Just remember that when you vote tomorrow...

 

It's been forced into liquidation, not administration.  Administration would give it a chance of surviving; liquidation doesn't.

 

Its demise was unavoidable.   The type of contracts BS works with are negotiated well in advance and are usually in place for 2-3 years.  With customers having no idea what tariffs on steel might be post Brexit, orders have collapsed and customers have gone elsewhere.  The government is unwilling to lend it the type of bridging loan required because it too has no idea what outcome Brexit will look like, or when, so doesn't know how viable the company is in terms of repaying the loans.

 

This is all coming from Greyball and BS management themselves, whom my company has close working relationships with.

 

The average salary at British Steel is £36,000 per annum, so that is 2000 relatively well-paid jobs gone.   Heartbreaking of course.  I wonder how many of them were turkeys voting for xmas three years ago?

[tinfoilhat]

1 minute ago, bendix said:

 

It's been forced into liquidation, not administration.  Administration would give it a chance of surviving; liquidation doesn't.

 

Its demise was unavoidable.   The type of contracts BS works with are negotiated well in advance and are usually in place for 2-3 years.  With customers having no idea what tariffs on steel might be post Brexit, orders have collapsed and customers have gone elsewhere.  The government is unwilling to lend it the type of bridging loan required because it too has no idea what outcome Brexit will look like, or when, so doesn't know how viable the company is in terms of repaying the loans.

 

This is all coming from Greyball and BS management themselves, whom my company has close working relationships with.

 

The average salary at British Steel is £36,000 per annum, so that is 2000 relatively well-paid jobs gone.   Heartbreaking of course.  I wonder how many of them were turkeys voting for xmas three years ago?

70% voted leave in north east Lincolnshire.  

[lobster]

Whilst no doubt Brexit and Cheap Chinese Steel have played their part in British Steel's demise . Everybody seems to be missing the obvious,  the rather " murky " secretive hedge fund Greybull that acquired British Steel . They have a track record of acquiring distressed companies ,restructuring them so when they do go  bust Greybull make money . Remember Monarch Airlines ,Greybull claimed it would lose up to £250 million when in fact they had struck a rather lucrative deal with Boeing insulating themselves against large losses

 

Greybull acquired what was to become British Steel from Tata for £1 though there are unconfirmed reports that Tata handed over a not insignificant dowry and Tata picking up some of the pension liabilities . (Shades of Philip Green & BHS  ) Greybull seem to have put very little of their own money in  , taken out in substantial  fees  and protected itself as a secured creditor whilst leaving the British Taxpayer to pick up the tab

[bendix]

Why are Greybull secretive and murky?  They are a private equity fund designed to acquire and invest in - usually struggling - companies.  Some get turned around and become successful.  Others fail.

 

That's business.

[lil-minx92]

19 hours ago, ez8004 said:

Failing businesses should not be propped up by taxpayers money. 

Unless they are a bank