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British Steel ends Q3 2016 in profit

British Steel ends Q3 2016 in profit

Added to MTDCNC by MTDCNC on 25 January 2017

Following its first seven months of independence from TATA, British Steel is pleased to announce that it has ended Q3 of 2016 in profit. Furthermore, the company is starting 2017 in a strong position as it plans to execute the next stage of its turnaround plan.

The company, launched on June 1, continues to make progress against its turnaround plan and it is on track to build a business capable of delivering sustainable growth. With the continued implementation of the turnaround plan, the business is on track to continue its growth in a competitive global market through a combination of both further cost efficiencies and continued investment.

Whilst the macro-economic environment has been more challenging in recent months, largely driven by the rising price of raw materials, particularly increases to the price of coking coal, iron and scrap metal and foreign exchange fluctuations; the business is well-placed to manage these challenges and is pursuing a proactive and responsive pricing strategy.

The company has secured a series of significant contracts with long-term and new customers. This includes a £2m contract with Caledonian Modular to supply steel for accommodation blocks at Hinkley Point, an order for 16kt of rail for the M’Sila line and the North South Phosphate Mine line in Algeria and also a long-term contract with Italy’s national rail track company for track renewals, Rete Ferroviaria Italiana  (RFI).

Today, the company reaffirms its commitment to significant capital expenditure as part of our plan to improve competitiveness across our five business units: Primary Products, Construction, Rail, Rods and Special Profiles. This investment in technology and infrastructure will further strengthen capabilities and product offerings. During the reporting period British Steel has committed £39m in capital expenditure and made several significant investments including £1.8m in scale removal at the Skinningrove site.  Almost 350 new employees have joined the company since its launch on 1 June last year.

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