Future of British Steel remains uncertain

The future of workers, suppliers and customers of United Kingdom-based steelmaker British Steel remain uncertain. The steelmaker was forced into compulsory liquidation late May after being denied a $38 million government loan.

The company says an Official Receiver has been appointed as liquidator of the company. British Steel says it continues to “trade as normal,” while appointed government administrators work to find a new owner of the business.

According to an online report by Financial Times, the receiver has identified dozens of potential buyers of the company and has sent out 60 nondisclosure agreements to potential buyers.

Owned by U.K.-based investing firm Greybull Capital, British Steel produces about 3 million metric tons of steel per year and employs 5,000 workers, while 20,000 suppliers and customers rely on the company. British Steel operates facilities in the U.K., France and the Netherlands, with majority of employees at its Scunthorpe, U.K., plant.

British Steel, along with other British steelmakers, is facing a challenging trading environment around Britain’s planned exit from the European Union. According to another online report by Reuters, British steelmakers are faced with paying some of the “highest green taxes and energy costs” in the world and a no-deal Brexit with the European Union is putting the companies in jeopardy.

British Steel secured a government loan last month to continue to maintain operations and comply with the European Union’s Emissions Trading System (ETS) rules; however, because of uncertainties around Brexit, Britain has not issued any free permits or “carbon credits,” which companies rely on to continue to operate, Reuters reports.