Boris Johnson Promises to Help British Steel Until New Owner Is Found

(Bloomberg) -- Boris Johnson, the front-runner to become the U.K.’s next prime minister, has promised to keep supporting British Steel until a new owner can be found.

The company, Britain’s second-biggest steelmaker, was put into compulsory liquidation in May but has continued to operate and pay its 5,000 workers after the government gave the receiver an indemnity.

British Steel has attracted bids for both the whole company and different parts of it. Johnson welcomed the interest and promised to keep the indemnity arrangement if he is elected Conservative leader later this month.

“British Steel is a hugely important part of the British economy on Teesside and in Scunthorpe and their surrounding areas,” Johnson said in a statement to Bloomberg, ahead of a debate in Parliament on the company on Tuesday.

“I welcome the news that several bidders have now come forward for the company,” he said. “If I am elected as Conservative Leader and Prime Minister, I will ensure that the indemnity is maintained to continue operations until a new owner is found.”

British Steel’s operations include two giant blast furnaces in the northern town of Scunthorpe. It directly employs about 5,000 people, and another 20,000 are supported by its supply chain.

To contact the reporter on this story: Tim Ross in London at tross54@bloomberg.net

To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Thomas Penny, Stuart Biggs

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