German manufacturer eyes British Steel’s French plant

Hayange mill tests materials from Saarstahl amid efforts to save UK group

AGerman group is interested in buying British Steel’s French factory, according to people aware of the situation, even as efforts drag on to prevent a breakup of the stricken company.

British Steel collapsed into insolvency more than two months ago after the government rejected its plea for a bailout, throwing into doubt the future of one of the country’s largest manufacturers.

With a process under way to find a buyer to rescue the busi

ness out of liquidation, the government and unions want it to be sold as a single going concern rather than flogged off piecemeal.

They believe that is the best way to preserve production and the jobs of the company’s 5,000-strong workforce, more than half of which is based in Scunthorpe, Lincolnshire.

However, some of British Steel’s smaller factories and individual business units have attracted the attention of potential suitors.

Its Hayange mill in northern France has been eyed up by Saarstahl, a German steel producer, according to three people with knowledge of the situation. The facility employs around 400 people producing rails for train lines and tramways and is profitable, according to a person close to the business.

Hayange is supplied with steel blooms from Scunthorpe but in recent weeks the French site has taken trial deliveries of material from Saarstahl for test rolling, according to two people. Saarstahl might also be interested in British Steel’s Dutch manufacturing subsidiary, FN Steel, they added.