Workers at the plant may be forced to accept a pay cut of around 3% for one year and reduced pension benefits as part of the deal, but Greybull’s commitment to invest £400m into the business will secure 4,000 employees’ jobs for at least the foreseeable future.
Greybull specialises in turning around the fortunes of struggling businesses. The plan is to make LPE profitable within two years. Options include negotiating a government loan of between £70m and £100m in the coming weeks.
Paul McBean, chairman of the Scunthorpe works multi-union committee, called confirmation of the deal “unbelievable news.”
"We have saved the local steel industry, thousands of jobs, the town and the community as a whole,” he continued.
"It's been an uphill battle without government help but all the efforts and resources put in by the unions and local senior management over the past two years have been worthwhile."
