Forgemasters chairman eyes Tata opportunity
A GROUP of specialist metals producers behind start-up company Albion Steel, led by Sheffield Forgemasters chairman Tony Pedder, have confirmed an interest in the South Yorkshire operations of Tata Steel.
Albion Steel was co-founded by Mr Pedder, a former Master Cutler, and Dr Rod Beddows, who advised Tata Steel on the acquisition of Corus in 2006.
It envisages investment of £200m in the Speciality Steels arm, which employs more than 2,000 in Rotherham and Stocksbridge, to introduce new technology for producing strip steel and changes in the way the assets are used, according to the Financial Times.
A spokesperson for Albion said: “Albion Steel Limited was established to bring new steel manufacturing technology to the UK and is in the process of developing its business plan, locating a potential site and securing further investment.
“The recent Tata problems highlighted an unexpected opportunity to combine the Albion concept with the Tata Steel Speciality Steels business in an innovative structure which may potentially include other metals producers in the region.
“This opportunity is a complex one, which has the best prospect of successful execution if Tata is prepared to approach its disposal plans in a different way and to engage strategically with Albion and other interested parties to seek a negotiated structure.”
Investment firm Greybull Capital, which has provisionally agreed to buy Tata’s Scunthorpe steelworks, has also eyed the speciality business. At least three different parties are interested, it is understood.
