The England-based steel company, British Steel, has confirmed its largest single investment in ten years after announcing a new £50mn ($56mn) project to enhance operations in its wire rod business, The Manufacturer reports.
It is hoped that the investment will enable the company to grow in current markets and progress in new ventures in the UK and abroad.
The project is expected to considerably improve the quality of wire rod manufactured at British Steel’s headquarters in Scunthorpe.
“This is a major investment in the future of our business, underpinning our commitment to providing customers with higher technical specifications of steel and a diverse, premium product range,” said Paul Martin, British Steel deputy CEO.
“Not only will this increase our ability to serve the domestic market, it will allow us to become a more competitive exporter and accelerate the growth of British Steel in line with our company strategy.”
During its first three years of operation, British Steel has opted to invest £120mn ($156mn) in capital projects, having previously bought premium wire rod manufacturer, FNsteel, in The Netherlands.
“Our wire rod performs an essential role in letting people go about their everyday lives, from the car or bus they travel to work in, to the bed they sleep in at night,” stated Richard Sims, British Steel managing director Wire Rod.
“Today is also hugely significant for our employees whose skill, and dedication to customer satisfaction, enable us to invest with such confidence. Together we look forward to opening the new line and growing into the new markets this investment allows.”
The new operation is to be commissioned in August 2019 with work scheduled to begin this summer.