£30m rescue package for steel firm
STEEL company Celsa has been granted an emergency loan by the Government in what is believed to be the first deal under the “Project Birch” programme to support strategically important businesses.
Celsa, which has 1,600 staff in the UK and is the country’s biggest manufacturer of steel used to reinforce concrete for the construction industry, has received a £30m bail-out.
It is understood that while the funding comes as a loan, its terms could see the taxpayer take a stake in the business if it is not paid back, although the Government said it “expected to be repaid in full”.
Details of the rescue were not revealed, but the Government said it included commitments relating to protecting jobs, environmental targets, and “restraints” on executive pay.
Existing lenders and shareholders also had to put in extra funding.
Jaguar Land Rover and Tata Steel also seeking taxpayer support. The Business Department said the Celsa agreement was made in “exceptional circumstances”, adding there was a “high bar for putting taxpayers’ money at risk in this way” which was “an absolute last resort”.