26 Sep 2017

British Steel signs share purchase agreement for acquisition of FNsteel

British Steel has signed a share purchase agreement for the acquisition of FNsteel in the Netherlands.

Peter Bernscher, British Steel CEO, said: “I’m pleased to say we’ve signed a share purchase agreement for the acquisition of FNsteel, the manufacturer of premium wire rod products.

“The acquisition would complement our current capabilities as FNsteel makes different specifications of wire rod to those we manufacture in Scunthorpe. It would enable us to improve and enhance our value chain and customer offering.

“When we complete this deal - which is subject to regulatory approval - it’s our intention to maintain employee and production levels in the UK and the Netherlands, and it will be very much business as usual.

“We look forward to welcoming FNsteel’s employees into the British Steel family and I’ve every confidence we’ll build a bright future together.

“I’d like to thank FNsteel’s shareholder, Mahler Investments B.V., for their ongoing support during the sales process and we’re now focused on completing the deal and working in partnership with the management, employees, unions, works council, customers and suppliers.”

Key facts

• British Steel has an annual turnover of £1.2 billion and our Scunthorpe wire rod mill employs 300 people
• British Steel’s Scunthorpe mill produces wire rod ranging in diameter between 5.5-17.0mm in 0.5mm increments and has a global customer base. Our wire rod goes into a wide variety of products, ranging from tyre cord and bed springs to paper clips and pins
• FNsteel employs nearly 300 people at its wire rod mill in Alblasserdam and has an annual turnover of £133 million
• FNsteel manufactures wire rod ranging in diameter between 5.5-30mm and is a respected supplier of highly specialised products to the European automotive, construction and engineering industries
• FNsteel is a specialist in wire-rod drawing and its downstream capabilities complement British Steel’s operations