British Steel has signed a share purchase agreement for the acquisition of the Dutch wire producer FNsteel.

Peter Bernscher, British Steel’s CEO (pictured), said: “This acquisition will complement our current capabilities, as FNsteel makes different specifications of wire rod to those we manufacture in Scunthorpe. It will enable us
to improve and enhance our ‘value chain’ and customer offering.

“When we complete this deal, which is subject to regulatory approval, it is our intention to maintain employee and production levels in the UK and the Netherlands, and it will be very much business as usual.

“We look forward to welcoming FNsteel’s employees into the British Steel family, and I’ve every confidence that we’ll build a bright future together.”

British Steel has an annual turnover of £1.2 billion, and its Scunthorpe rod mill employs 300 people; they make wire rod for products ranging from tyre cord and bed springs to paper clips and pins.

FNsteel makes wire rod for specialised products used by the European automotive, construction and engineering industries.