Flacks Group mulls acquisition of British Steel
The Flacks Group, a U.
S.-based investment company specializing in the recovery of troubled businesses, is considering acquiring troubled British steel producer British Steel, CEO Michael Flacks told McCloskey on February 3.
Flacks Group is in the early stages of a potential purchase, and no agreement has yet been reached with the UK authorities.
In April 2025, when British Steel faced the possibility of complete closure, the British government intervened, taking direct control of its operations. The UK government is currently focused on maintaining the Scunthorpe and Teesside plants, ensuring the supply of raw materials, and reviewing previously proposed decarbonization plans.
Flacks Group plans to replace the existing blast furnaces (BFS) and oxygen furnaces at British Steel with electric arc furnaces, which will significantly reduce CO2 emissions.
These plans correspond to the project originally proposed by the Chinese Jingye Group, the company that controlled British Steel before the government intervened. The company planned to install one EDP at the Scunthorpe plant, thereby closing its processing plants, and another EDP at the Teesside rolling mill.
There are two oil depots at the Scunthorpe site with a total installed capacity of about 3 million tons per year. The other two are not working.
At the end of last year, Flacks Group became the preferred buyer for the Italian steel manufacturer Acciaierie d'Italia (ADI). The company plans to double steel production at ADI to 4 million tons within one year. As part of the decarbonization initiative, Flacks Group plans to replace existing chipboards with two EDPS and leave only one chipboard in operation.
Michael Flacks said he expects the deal with ADI to be approved by the end of April this year.
Author: Maria Thanatar
Opisnet.com