February 12, 2020 @ 14:49 by Steven Hugill
The UK’s largest steel stockholder has confirmed its intention to swoop for an industry operator’s North East distribution centre.
Barrett Steel is primed to take on British Steel’s Blaydon-based metal centre.
The hub forms part of British Steel’s wider UK distribution network, which offers customers access to products, as well as processing and service support.
Barrett’s deal is expected to go ahead once China’s Jingye Group completes a takeover deal for British Steel, which employs hundreds of North East workers across its Blaydon site, the Teesside Beam Mill, near Redcar, and a special profiles factory, in Skinningrove, east Cleveland.
The takeover, announced last year, includes the business and assets of British Steel Limited – including its Scunthorpe steelworks and UK mills – and shares in Redcar Bulk Terminal Limited.
A spokesperson for Bradford-based Barrett said: “We are currently awaiting the sale of British Steel to be finalised.
“Discussions are continuing, but we would like to clarify that the sale between Jingye and Barrett will only be completed once the sale between British Steel and Jingye is confirmed.”
Barrett’s deal would include further metal centres in Wolverhampton, Dartford and Scunthorpe, and offices in Edinburgh and Cheadle, Manchester.
A Government-appointed official receiver has been overseeing British Steel since its collapse into compulsory liquidation last year.
Speaking of Jingye’s deal, they previously said contract completion was conditional on a number of matters, including gaining necessary regulatory approvals.