Greybull vows not to cut jobs as it gets Tata steel plant keys

The new owner of Tata Steel’s railtrack-making business has struck an upbeat tone, promising to keep jobs and maintain a profit next year.

Greybull Capital has agreed to buy Tata Steel’s long products business, which makes steel for about 90% of the UK’s railtracks and thousands of other large-scale steel products, for a nominal sum. It will rename it British Steel.

Greybull said 4800 jobs at the business were safe.

The company comprises 4400 workers in the UK at plants including Scunthorpe and Redcar & Cleveland and 400 in France.

It produces nearly three million tonnes of steel every year. Greybull partner Marc Meyohas said: “Much remains to be done, but the early signs are positive.”

The company has promised to inject £400 million into the group and has won the backing of US bank PNC Financial.

Greybull is thought to be one of several parties vying to buy the rest of Tata Steel’s UK steel operations, including Port Talbot, although it refused to be drawn on the subject.

It has a varied portfolio, including Morrisons’ former M Local stores and Monarch Airlines.