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British Steel seeks govt loan for ‘Brexit issues’

May 16, 2019 00:00:00

British Steel has said it is seeking further financial support from the government to help it address "Brexit-related issues," reports BBC.

It follows reports the company needs a loan of up to £75m to keep trading in the coming months.

The UK's second largest steel firm employs 4,500 people, and about 20,000? indirectly via its supply chain.

The company said "uncertainties around Brexit are posing challenges for all businesses including British Steel".

It added: "We are holding constructive discussions with our stakeholders on how to navigate them.

"Discussions are continuing about a package of additional support to assist the company address broader Brexit-related issues, whilst continuing with [the company's] investment plans."

A spokesperson for the the Department for Business, Energy and Industry Strategy said: "As this is speculation, we won't be commenting." British Steel's main plant is at Scunthorpe, but it also has sites in Teesside, Cumbria and North Yorkshire. The move comes just two weeks after British Steel secured a £100m loan from the government to pay its EU carbon bill.

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