Steel industry bodies explain supply squeeze
A start-up steel company led by Yorkshire businessman Tony Pedder could be poised to enter the bidding war to buy part of Tata’s UK steel operations.
Albion Steel was co-founded by Mr Pedder, who is the chairman of Sheffield Forgemasters, with the aim of bringing new steel manufacturing technology to the UK. The company has confirmed its interest in Tata’s Speciality Steels, which employs more than 2,000 in Rotherham and Stocksbridge.
The Indian firm Tata wants to offload its UK operations which include sites in South Yorkshire and the Port Talbot steelworks in South Wales.
A spokesman said Albion Steel was in the process of developing its business plan, finding a potential site and securing further investment.
The spokesman added: “The recent Tata problems highlighted an unexpected opportunity to combine the Albion concept with the Tata Steel Speciality Steels business in an innovative structure which may potentially include other metals producers in the region. This opportunity is a complex one which has best prospect of successful execution if Tata is prepared to approach its disposal plans in a different way and to engage strategically with Albion and other interested parties to seek a negotiated structure.”
Liberty House, a business which specialises in metals trading, also said it plans to submit a letter of intent to bid for Tata’s UK business.