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British Steel on the brink of collapse – with 25,000 jobs at risk

British Steel on the brink of collapse – with 25,000 jobs at risk

Business
Britain's second-largest steel producer is on the brink of collapse amid growing signs that an emergency government loan would fail to materialise, putting a total of close to 25,000 jobs at risk.Sky News has learnt that British Steel, its lenders and Whitehall are preparing for an insolvency to take place within 48 hours, with EY expected to be formally appointed as administrators on Wednesday unless a deal is struck by Tuesday afternoon. If last-minute talks fail to secure a solvent deal, British Steel's collapse could result in more than 4,000 redundancies at its giant Scunthorpe steelworks, job cuts at its other sites, and as many as 20,000 more jobs in its supply chain also jeopardised by the crisis. Image: The company was seeking a taxpaye...
US lifts steel and aluminium tariffs on Canada

US lifts steel and aluminium tariffs on Canada

Business
The US has reached a deal with Canada to lift tariffs on steel and aluminium imports in a move that could lead to approval for a new North American trade deal.In a joint statement, the US and Canada announced that a 25% tariff on steel imports, and of 10% on aluminium, will end in 48 hours. It is widely expected the US and Mexico will make a similar announcement soon.The US implemented the tariffs last year on grounds of "national security". Under the agreement, there will be no quotas on how much steel or aluminium the three countries buy from overseas.However, the US and Canada will monitor imports and if a country is determined to be buying in too much, one of the other nations can request a consultation and potentially re-impose tariffs. What does the...
British Steel begs for taxpayer funds to avert collapse

British Steel begs for taxpayer funds to avert collapse

Business
Ministers are drawing up secret contingency plans for the collapse of British Steel amid a fresh funding crisis that could trigger thousands of job losses at its plant in Scunthorpe and intensify fears about the entire industry's future.Sky News has learnt that ‎insolvency experts have been placed on standby in case the UK's second-largest steel producer cannot secure tens of millions of pounds to see it through the coming months. The contingency plans are being drawn up as the company seeks a further loan of up to £75m from the government.A financial support loan on commercial terms was agreed in outline with Whitehall as part of a broader package announced earlier this month, insiders claimed on Tuesday.However, the second part of the deal was supposed to have been finalised by the end o
British Steel in talks about £100m government loan

British Steel in talks about £100m government loan

Business
By Mark Kleinman, City editor The UK's second-biggest steel producer is seeking an urgent £100m‎ government loan after Theresa May's failure to pass a Brexit deal left it frozen out of an EU-wide carbon trading scheme.Sky News has learnt that British Steel, which directly employs 5000 people, is in talks with Whitehall about securing the emergency funding within weeks. Ministers have drafted in the professional services firm KPMG to advise them on the talks‎, which have been going on for several weeks, insiders said this weekend.Greg Clark, the business secretary, has been briefed about the situation.British Steel is understood to face a cash-flow shortfall as a consequence of the European Union's (EU) decision not to allocate UK-based companies their usual pe
UK to keep block on cheap Chinese steel after Brexit

UK to keep block on cheap Chinese steel after Brexit

Business
By Adam Parsons, business correspondent The government has given its first sign of how it could manage the rules on imports coming into the UK after Brexit.In its most eye-catching announcement, it has confirmed that it will still block China from "dumping" cheap steel on the British market. It has announced plans to deal with so-called trade remedies - extra tariffs that are put on products being imported into the European Union because of suspicions that they have benefited from unfair support.It will mean existing tariffs being maintained on cheap imports, such as Chinese steel and ceramics, in order to protect British industries from the threat of cut-price competition.The British government, like the EU, maintains that the Chinese steel industry bene...