Talks continuing over future of Caparo Merchant Bar mill in Scunthorpe

By Scunthorpe Telegraph | Posted: 29 Jun 2017

Negotiations over the sale of the Caparo Merchant Bar mill in Scunthorpe are continuing.

The Scunthorpe Telegraph understands from industry sources that talks between the company and the Liberty House Group are at an advanced stage.

Both Caparo and Liberty declined to comment yesterday (Wednesday, June 28).

Last month, Liberty took over the former Tata Steel UK speciality steel business in South Yorkshire, saving 1,700 jobs.

The group’s interest in coming to Scunthorpe is said to have been triggered after the company appointed British Steel’s former commercial director Peter Hogg as its chief operations for speciality steels.

Mr Hogg joins former Scunthorpe works director, Jon Bolton, as chief executive, on the management board.

Together, the two former Scunthorpe bosses have set about creating 300 new jobs in the speciality steel business.

Last year, Liberty also bought the two former Tata Steel plate mills in Scotland.

British Steel, which employs 3,000 people in Scunthorpe, was also said to be interested in acquiring the neighbouring Caparo mill.

Under a takeover deal a year ago, the owners at Greybull Capital inherited a 25 per cent share from Tata Steel in the mill, which employs around 160 staff.

The Caparo mill, which can produce 400,000 tonnes of steel annually, was set up in 1985, after the owners Lord Paul and his family acquired the town’s former rod mill from British Steel.

Around £10 million was invested in the business and at the time the former British Steel company was given a 25 per cent share.

Since 1995, Caparo has spent a further £16 million on improving the efficiency and product range of the mill.

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