DLA Piper has advised British Steel, the leading European steel manufacturer, on securing a GBP50 million facility from Secure Trust Bank to support plans to expand production and sales over the coming months.

The steelworks, which has existed for around 150 years, supplies premium long products around the world and has facilities across the UK and Europe. In March 2020, British Steel was acquired by Jingye Group, a Chinese multi-industrial company specialising in iron and steel manufacturing. Following the acquisition, Jingye committed to making the business more competitive and sustainable.

British Steel is currently developing new products to support the UK’s infrastructure drive and is investing in its existing assets to modernise plants and improve performance. This includes plans to develop an Electric Arc Furnace in Teesside and a new power plant to improve efficiency of the Scunthorpe site. This GBP50 million facility will support British Steel in growing its production and sales volumes to maximise opportunities across the market.

The DLA Piper team was led by Manchester-based Finance partner Joseph Frew, assisted by senior associate Alastair Carruthers and associate Ryan Jenkinson.

Commenting, Joseph Frew said: “We are delighted to be supporting British Steel at this exciting time. This funding will provide the necessary support to their working capital, allowing them to grow production and sales volumes in line with their investment plans.”