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Eldorado

British Steel in compulsory liquidation

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Eldorado

"British Steel has been placed in compulsory liquidation, putting 5,000 jobs at risk and endangering 20,000 in the supply chain.

"The move follows a breakdown in rescue talks between the government and the company's owner, Greybull.

The Government's Official Receiver has taken control of the company as part of the liquidation process."

Full report at the BBC: https://www.bbc.co.uk/news/amp/business-48365241

"Blaming Brexit, British Steel collapses putting about 25,000 jobs at risk"

At NBC2 (CNN): https://www.nbc-2.com/story/40515194/blaming-brexit-british-steel-collapses-putting-nearly-25000-jobs-at-risk

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stevewinn

As a country we have to step in. its a national strategic asset. retaining British steel for building our nation from infrastructure to building ships of war, and everything in between. With globalism not all its made out to be, and lets not forget Brexit.

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OverSword
1 hour ago, stevewinn said:

As a country we have to step in. its a national strategic asset. retaining British steel for building our nation from infrastructure to building ships of war, and everything in between. With globalism not all its made out to be, and lets not forget Brexit.

Total agreement. 

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stevewinn

you couldn't make it up,

British Steel asks for a £39Million pound loan off the British Govt the British Govt says No. Then.....

British Steel was asked to pay a £120m green tax to the EU under its emissions trading scheme.

Then the British Govt steps in with......£120m Govt Loan.

Where do we think this money is going?

We as a country are completely fecking Bonkers. c'mon people bloody wake up. vote for the Brexit Party tomorrow, and lets get on with bloody leaving.  

Quote

British Steel receives £120m government loan

The government has given British Steel an emergency £120m loan to cover an EU bill for carbon dioxide emissions, after the delay in reaching a Brexit withdrawal deal forced it to intervene.

The business secretary, Greg Clark, told parliament that British Steel would have faced a bill of more than £600m from EU regulators if the government had not given it the support.

https://www.theguardian.com/business/2019/may/01/british-steel-receives-120m-government-loan

 

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Captain Risky

Oh well a slump in orders from the EU due to brexit uncertainty. No worries. Im sure they'll pick up orders from the U.S. and China.

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Eldorado

Related news...

"MPs are to launch an inquiry into the UK's steel industry after the collapse of one of the sector's biggest firms."

"The move by the Business Committee follows the liquidation of British Steel last month and concerns about the impact of Brexit on the steel industry.

"The committee will look at the role of former owner Greybull Capital, and the government, in the company's collapse."

Full report at the BBC: https://www.bbc.co.uk/news/business-48568338

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RoofGardener
On 5/22/2019 at 1:58 PM, Eldorado said:

"Blaming Brexit, British Steel collapses putting about 25,000 jobs at risk"

At NBC2 (CNN): https://www.nbc-2.com/story/40515194/blaming-brexit-british-steel-collapses-putting-nearly-25000-jobs-at-risk

The link doesn't work.. or rather.. it doesn't lead to the story. 

BREAKING NEWS.... 

"Blaming Brexit, NBC/CNN news makes bull**** claim, and trashes it's own credibility, such as remains following the 2016 election debacle. CNN viewership continues to crash-decline. "

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Eldorado
2 minutes ago, RoofGardener said:

The link doesn't work.. or rather.. it doesn't lead to the story. 

BREAKING NEWS.... 

"Blaming Brexit, NBC/CNN news makes bull**** claim, and trashes it's own credibility, such as remains following the 2016 election debacle. CNN viewership continues to crash-decline. "

https://edition.cnn.com/2019/05/22/business/british-steel-collapse/index.html

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RoofGardener

BREAKING NEWS

British Steel formed in 1967. Loses money from day one. Re-capitalised by Margeret Thatcher. Massively cuts down on plants and employees. Brexit blamed for resulting redundancies (1982).

Taken over by Corus in 1999. Makes loss. Brexit blamed. 

Taken over by Tata Steel in 2007. Makes Loss. Brexit blamed. 

Sold to GreyBull in 2015/2016. Immediately makes loss. Brexit blamed. 

Finally collapses in 2019 after three years of making a loss, in turn part of a pattern of 30 years of making a loss. 

Brexit blamed. 

Asteroid hits Russia. Brexit blamed. 

The Siege of Vienna in 1529 marked the height of the Ottoman Empire. Suleiman the Magnificent failed to capture the city, despite significant advantages in manpower. Brexit blamed. 

The Raid on the Medway in June 1667. A Dutch fleet led by Michiel de Ruyter sailed up the river Medway and attacked the English fleet laying at anchor at their home base of Chatham. Ending in a decisive victory for the Dutch, and an unfavorable peace for the British in the Second Anglo-Dutch War. Brexit blamed. 

And so on, and so forth. 

CNN are full of **** ! 

 

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RabidMongoose
On ‎22‎/‎05‎/‎2019 at 4:50 PM, stevewinn said:

As a country we have to step in. its a national strategic asset. retaining British steel for building our nation from infrastructure to building ships of war, and everything in between. With globalism not all its made out to be, and lets not forget Brexit.

You forget stevewinn, the EU legislation we are subject too prevents us giving it state aid.

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Tatetopa
34 minutes ago, RoofGardener said:

BREAKING NEWS

British Steel formed in 1967. Loses money from day one. Re-capitalised by Margeret Thatcher. Massively cuts down on plants and employees. Brexit blamed for resulting redundancies (1982).

Taken over by Corus in 1999. Makes loss. Brexit blamed. 

Taken over by Tata Steel in 2007. Makes Loss. Brexit blamed. 

Sold to GreyBull in 2015/2016. Immediately makes loss. Brexit blamed. 

Finally collapses in 2019 after three years of making a loss, in turn part of a pattern of 30 years of making a loss. 

Greetings RoofGardner,

From your points above, it appears this firm has been mis-managed from the get-go.  Do you guys think that more money in loans or grants will reverse the trend?  Is is a management, equipment, or materials problem that needs to be fixed?  Would you be better off starting a new firm in a new plant with new management?  If this firm is so far  off its trolley, could you depend on it in state of emergency?  

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L.A.T.1961

UK steel has had various problems to manage, one is the US tariff on Chinese steel. This has created an oversupply and price reduction of steel prices in Europe. Another obstacle is UK energy costs for industrial users.

Although there are a number of reasons behind this significant difference in industrial electricity prices in the UK and other EU countries, climate change policies form a substantial part of the explanation. UK government did introduced a compensation measures for energy intensive industries over recent years including, up to 90% relief on the electricity Climate Change Levy. However, other European countries have reacted faster to offset such policy costs.

Similar to the UK, France, Germany, Denmark and Italy have also implemented measures to reduce the costs. France and Germany also provide their industrial sectors with different reductions on transportation fees.

So it is EU nations providing more subsidies to their steel industry which has allowed them to out compete UK based producers which did not help.

So much for level playing fields and the benefit of EU membership. ;) 

 

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Gromdor

So let me get this straight.  It loses money, but England wants to socialize it so you will have a supply of steel for national security? 

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RabidMongoose
20 minutes ago, Gromdor said:

So let me get this straight.  It loses money, but England wants to socialize it so you will have a supply of steel for national security? 

The EU legislation we are bound by prevents our country giving state aid to any of our organisations in need.

China has ramped up steel production producing 100s of millions of tonnes above its needs per year waiting for domestic consumption to increase. The surplus gets dumped onto the market and this is what the problem is. Large quantities of cheap steel dumped onto the market mean that other steel manufacturers are put out of business.

We are not the USA, we cannot trade tariff steel imports from China because its the EU which makes these decisions.

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Captain Risky
Posted (edited)
2 hours ago, Gromdor said:

So let me get this straight.  It loses money, but England wants to socialize it so you will have a supply of steel for national security? 

No @stevewinn wants to nationalise it so they can use British steel to build English Warships. 

Edited by Captain Risky

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ethereal_scout
Quote

It loses money, but England wants to socialize it so you will have a supply of steel for national security? 

Yes, that's it exactly. I'm sympathetic since I'm not convinced many of these 'national assets' are not managed that well. Having said that I'm religiously free-market and believe business should be able to stand on its own two feet. British Steel is apparently the second largest producer of steel in the UK so I assume the largest is profit making. Also they're having to compete with India and China internationally so I don't hold out too much hope of a free market solution. With Brexit basically started I wouldn't be surprised if their European customer base has evaporated - so basically they're shafted. I would support some basic attempts at safe-guarding the site until all attempts at a free market solution can be exhausted. Although Govt subsidies are strictly illegal I'm not convinced the Europeans don't subsidise their 'core' businesses so I'd be for protecting the site somehow against asset stripping etc. I'm not for nationalisation until its our last steel mill left.

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RoofGardener
8 hours ago, Captain Risky said:

No @stevewinn wants to nationalise it so they can use British steel to build English Warships. 

Sounds like an EXCELLENT idea to me ? We really need another 6 Type-45 Air Defence Destroyers, plus another 2-3 attack submarines, for Carrier Escort, and then there are the 20 Type-26 and Type 31 frigates that are due to be built ? 

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Captain Risky
1 hour ago, RoofGardener said:

Sounds like an EXCELLENT idea to me ? We really need another 6 Type-45 Air Defence Destroyers, plus another 2-3 attack submarines, for Carrier Escort, and then there are the 20 Type-26 and Type 31 frigates that are due to be built ? 

Yeah it couldn't hurt in these uncertain times. Though the RN seems on paper to be a tad light on fire power. Maybe when all F35B's are on deck it might seem different. But still there is a shortage of Sub's and destroyers. But does it really matter where the steel came from to build these gunboats?

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RoofGardener
6 minutes ago, Captain Risky said:

Yeah it couldn't hurt in these uncertain times. Though the RN seems on paper to be a tad light on fire power. Maybe when all F35B's are on deck it might seem different. But still there is a shortage of Sub's and destroyers. But does it really matter where the steel came from to build these gunboats?

Probably not. 

Oh... and I'd like to add a Helicopter Assault Ship to the wish list, similar to the old HMS Ocean. In addition to assault, it would also make a BRILLIANT addition for disaster relief efforts. (earthquakes, volcanoes etc ). 

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Captain Risky
Just now, RoofGardener said:

Probably not. 

Oh... and I'd like to add a Helicopter Assault Ship to the wish list, similar to the old HMS Ocean. In addition to assault, it would also make a BRILLIANT addition for disaster relief efforts. (earthquakes, volcanoes etc ). 

Yes yes all very good. But your missing the point. Keeping an industry alive that will lose orders in Europe (due to brexit) just makes RN ships dearer. I wonder how many industries will also just disappear because of brexit? 

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