British Steel ended Q3 of 2016 in profit following its first seven months of independence, which has lead to Scunthorpe steel workers returning to full pay.
Workers agreed to a 3% salary sacrifice in June 2016 in order to help turn the company around, following the sale of Tata Steel to British Steel in June.
The salaries will now be reinstated to what they were from June 2016 as the company continues with plans to generate cash to sustain further development and investment.
The company has reported it is ‘on track to continue its growth in a competitive global market’.
Over the last seven months, British Steel has secured a series of significant contracts with long-term and new customers, including:
- Hinkley Point – £2 million contract with Caledonian Modular to supply steel for accommodation blocks
- Infrarail – 16kt of rail for the M’Sila line and the North South Phosphate Mine line in Algeria
- Rete Ferroviaria Italiana (RFI) – long-term contract with Italy’s national rail track company for track renewals
As a whole, the company has also bolstered its ranks with an additional 350 new recruits since June 1, as well as an anticipated 57 apprentices and 31 graduates to be taken on this year.
British Steel’s Executive Chairman Roland Junck said: “Having implemented the first stage of our turnaround plan, returning the business to profit and putting it on a sustainable footing, we are now well positioned to implement the next stage of the plan.
“This will be focused on ensuring tactical growth of both our business and brand, which we see as crucial next steps in our strategy.
“Our employees remain fundamental to our success. Last year, they agreed to a temporary three per cent salary sacrifice including a reduction in their pension contributions. This was implemented in June 2016 and is scheduled to be re-instated on June 1 this year.
“We continue to enjoy incredible support from our employees and I’d like to thank them as without their skill, dedication and personal sacrifices we would not be where we stand today. The unions have remained steadfast, while the supportive handover from Tata Steel also helped us to hit the ground running on day one.”