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British Steel seeks second loan from UK government

Christian Fernsby |
British Steel is seeking a second loan from the UK government to help it address "Brexit-related issues."

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The value of the loan was not disclosed.

However, according to the UK's GMB union, it will be as much as GBP75 million ($96.81 million).

The loan will help British Steel continue with its planned acquisition, announced last week, of troubled French special steelmaker Ascoval, the company said.

This follows the UK government's granting of a GBP120 million loan around two weeks ago to help British Steel cover carbon market costs linked to the UK's ongoing withdrawal from the EU.

British Steel was created when Greybull Capital bought Tata Steel's European long products business in June 2016 and currently produces some 3 million mt/year of products.

It has manufacturing facilities in the UK, France and the Netherlands.

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