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Contents

   



(Top)
  


1 History  


1.1  Nationalisation  




1.2  Restructuring  




1.3  Privatisation  




1.4  Post-privatisation  






2 Chairmen  




3 Sponsorships  




4 In popular culture  




5 See also  




6 References  




7 Bibliography  




8 Further reading  




9 External links  













British Steel (1967–1999): Difference between revisions






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{{Short description|Steelmaking enterprise in the United Kingdom}}

{{about|the nationalised steel company formed 1967|the company founded in 2016|British Steel Limited}}

{{about|the nationalised steel company formed 1967|the company founded in 2016|British Steel Limited|the album by Judas Priest|British Steel (album)}}

{{Use dmy dates|date=June 2020}}

{{Use dmy dates|date=June 2020}}

{{Use British English|date=September 2019}}

{{Use British English|date=September 2019}}
Line 8: Line 9:

| image_caption =

| image_caption =

| fate = Merger

| fate = Merger

| successor = [[Tata Steel Europe|Corus]]

| successor = [[Corus Group|Corus]]

| foundation = 1967

| foundation = 1967

| defunct = 6 October 1999

| defunct = 6 October 1999
Line 20: Line 21:

}}

}}


'''British Steel''' was a major British [[steel]] producer. It originated from the [[nationalization|nationalised]] '''British Steel Corporation''' ('''BSC'''), formed in 1967, which was privatised as a public limited company, '''British Steel plc''', in 1988. It was once a constituent of the [[FTSE 100 Index]]. The company merged with [[Koninklijke Hoogovens]] to form [[Tata Steel Europe|Corus]] in 1999.

'''British Steel''' was a major British [[steel]] producer. It originated from the [[nationalization|nationalised]] '''British Steel Corporation''' ('''BSC'''), formed in 1967, which was privatised as a public limited company, '''British Steel plc''', in 1988. It was once a constituent of the [[FTSE 100 Index]]. The company merged with [[Koninklijke Hoogovens]] to form [[Corus Group]] in 1999.


==History==

== History ==
⚫

Alasdair M. Blair (1997), Professor of International Relations and Head of the Department of Politics and Public Policy at De Montfort University, has explored the history of British Steel since the Second World War to evaluate the impact of government intervention in a market economy. He suggests that entrepreneurship was lacking in the 1940s; the government could not persuade the industry to upgrade its plants. For generations, the industry had followed a piecemeal growth pattern that proved relatively inefficient in the face of world competition.


⚫

Alasdair M. Blair (1997), Professor of International Relations and Head of the Department of Politics and Public Policy at De Montfort University, has explored the history of British Steel since the Second World War to evaluate the impact of government intervention in a market economy. He suggests that entrepreneurship was lacking in the 1940s; the government could not persuade the industry to upgrade its plants. For generations, the industry had followed a piecemeal growth pattern that proved relatively inefficient in the face of world competition.
⚫

The [[Labour Party (UK)|Labour Party]] came to power at the [[1945 United Kingdom general election|1945 general election]], pledging to bring several industries into [[state ownership]]. In 1946, it put the first steel development plan into practice with the aim of increasing capacity. It passed the [[Iron and Steel Corporation of Great Britain|Iron and Steel Act 1949]], which meant nationalisation of the industry, as the government bought out the shareholders, and created the [[Iron & Steel Corporation of Great Britain]]. American [[Marshall Plan]] aid in 1948–50 reinforced modernisation efforts and provided funding for them. However, the nationalisation was reversed by the [[Conservative Party (UK)|Conservative]] government after 1952.

⚫

The [[Labour Party (UK)|Labour Party]] came to power at the [[1945 United Kingdom general election|1945 general election]], pledging to bring several industries into [[state ownership]]. In 1946, it put the first steel development plan into practice with the aim of increasing capacity. It passed the [[Iron and Steel Corporation of Great Britain|Iron and Steel Act 1949]], which meant nationalisation of the industry, as the government bought out the shareholders, and created the [[Iron and Steel Corporation of Great Britain]]. American [[Marshall Plan]] aid in 1948–50 reinforced modernisation efforts and provided funding for them. However, the nationalisation was reversed by the [[Conservative Party (UK)|Conservative]] government after 1952.


The industry was re-nationalised in 1967 under another Labour government, becoming British Steel Corporation (BSC). But by then, 20 years of political manipulation had left companies, such as British Steel, with serious problems: a complacency with existing equipment, plants operating below full capacity (hence the low efficiency), poor-quality assets, outdated technology, government price controls, higher coal and oil costs, lack of funds for capital improvement, and increasing competition on the world market.

The industry was re-nationalised in 1967 under another Labour government, becoming British Steel Corporation (BSC). But by then, 20 years of political manipulation had left companies, such as British Steel, with serious problems: a complacency with existing equipment, plants operating below full capacity (hence the low efficiency), poor-quality assets, outdated technology, government price controls, higher coal and oil costs, lack of funds for capital improvement, and increasing competition on the world market.


By the 1970s, the Labour government's main goal for the declining industry was to keep employment high. Since British Steel was a major employer in depressed regions, it was decided to keep many mills and facilities operating at a loss. In the 1980s, Conservative Prime Minister [[Margaret Thatcher]] re-privatised BSC as British Steel. Under private control, the company dramatically cut its workforce and underwent a radical reorganisation and massive capital investment to again become competitive in the world marketplace.<ref>Alasdair M. Blair, "The British iron and steel industry since 1945," ''Journal of European Economic History'' (1997)26#3 pp 571–81</ref>

By the 1970s, the Labour government's main goal for the declining industry was to keep employment high. Since British Steel was a major employer in depressed regions, it was decided to keep many mills and facilities operating at a loss. In the 1980s, Conservative Prime Minister [[Margaret Thatcher]] re-privatised BSC as British Steel. Under private control, the company dramatically cut its workforce and underwent a radical reorganisation and massive capital investment to again become competitive in the world marketplace.<ref name="Blair">{{cite journal |last=Blair |first=Alasdair&nbsp;M. |title=The British iron and steel industry since 1945 |journal=Journal of European Economic History| issue=3 |date=Winter 1997|volume=26|pages= 571–81}}</ref>


===Nationalisation===

=== Nationalisation ===

BSC was formed from the assets of former private companies which had been nationalised, largely under the Labour government of [[Harold Wilson]], on 28 July 1967.<ref name="google">{{cite book|title=The Politics of Steel: Western Europe and the Steel Industry in the Crisis Years (1974–1984)|author1=Mény, Y.|author2=Wright, V.|author3=Rhodes, M.|date=1987|publisher=Walter de Gruyter|isbn=9783110105179|url=https://books.google.com/books?id=eYZinsF8qEAC|page=315|access-date=5 October 2014}}</ref> Wilson's was the second attempt at nationalisation, the post-war government of [[Clement Attlee]] had created the [[Iron & Steel Corporation of Great Britain]] in 1951 taking public ownership of 80 companies but this had been largely reversed by the following [[Conservative Party (UK)|Conservative]] governments of the 1950s with only Britain's largest steel company, [[Richard Thomas and Baldwins]], remaining in public ownership.

BSC was formed from the assets of former private companies which had been nationalised, largely under the Labour government of [[Harold Wilson]], on 28 July 1967.<ref name="google">{{cite book|title=The Politics of Steel: Western Europe and the Steel Industry in the Crisis Years (1974–1984)|last1=Mény |first1=Y.|last2=Wright |first2=V.|last3=Rhodes |first3=M.|date=1987|publisher=Walter de Gruyter|isbn=9783110105179|url=https://books.google.com/books?id=eYZinsF8qEAC|page=315|access-date=5 October 2014}}</ref> Wilson's was the second attempt at nationalisation; the post-war government of [[Clement Attlee]] had created the [[Iron and Steel Corporation of Great Britain]] in 1951 taking public ownership of 80 companies but this had been largely reversed by the following [[Conservative Party (UK)|Conservative]] governments of the 1950s with only Britain's largest steel company, [[Richard Thomas and Baldwins]], remaining in public ownership.

[[File:Hartlepool British Steel geograph-3431886-by-Ben-Brooksbank.jpg|thumb|British Steel [[Hartlepool]] Works, formerly South Durham Steel & Iron Company, in 1970]]

[[File:Hartlepool British Steel geograph-3431886-by-Ben-Brooksbank.jpg|thumb|British Steel [[Hartlepool]] Works, formerly South Durham Steel & Iron Company, in 1970]]


BSC was established under the [[Iron and Steel Act 1967]], which vested in the Corporation the shares of the fourteen major UK-based steel companies then in operation, being:

BSC was established under the [[Iron and Steel Act 1967]], which vested in the Corporation the shares of the fourteen major UK-based steel companies then in operation, being:

*[[David Colville & Sons]]

*[[David Colville & Sons]];

*[[Consett Iron Company]]

*[[Consett Iron Company]] Ltd;

*[[Dorman Long]]

*[[Dorman Long]] & Company Ltd;

*[[English Steel Corporation]]

*[[English Steel Corporation]] Ltd;

*[[GKN]]

*[[GKN]] Steel Company Ltd;

*[[John Summers & Sons]]

*[[John Summers & Sons]] Ltd;

*[[Lancashire Steel Corporation]]

*[[Lancashire Steel Corporation|The Lancashire Steel Corporation Ltd]];

*[[Park Gate Iron and Steel Company]]

*[[Park Gate Iron and Steel Company|The Park Gate Iron and Steel Company Ltd]];

*[[Richard Thomas and Baldwins]]

*[[Richard Thomas and Baldwins]] Ltd;

*[[Round Oak Steelworks]]

*[[Round Oak Steelworks]] Ltd;

*[[South Durham Steel & Iron Company]]

*[[South Durham Steel & Iron Company]] Ltd;

*[[Steel Company of Wales]]

*[[Steel Company of Wales|The Steel Company of Wales Ltd]];

*[[Stewarts & Lloyds]]

*[[Stewarts & Lloyds]], Ltd; and

*[[United Steel Companies]]

*[[United Steel Companies|The United Steel Companies Ltd]].


At the time of its formation, BSC comprised around ninety percent of the UK's steelmaking capacity; it had around 268,500 employees and around 200 wholly or partly-owned subsidiaries based in the United Kingdom, Australia, New Zealand, Canada, Africa, South Asia, and South America.<ref>{{cite web|url=http://www.uksteel.org.uk/keydates.htm |title=UK Steel:Key dates|archive-url=https://web.archive.org/web/20080124014508/http://www.uksteel.org.uk/keydates.htm |archive-date=24 January 2008 |access-date=23 February 2008}}</ref>

At the time of its formation, BSC comprised around ninety per cent of the UK's steelmaking capacity; it had around 268,500 employees and around 200 wholly or partly-owned subsidiaries based in the United Kingdom, Australia, New Zealand, Canada, Africa, South Asia, and South America.<ref>{{cite web|url=http://www.uksteel.org.uk/keydates.htm |title=UK Steel:Key dates|archive-url=https://web.archive.org/web/20080124014508/http://www.uksteel.org.uk/keydates.htm |archive-date=24 January 2008 |access-date=23 February 2008}}</ref>


Dorman Long, South Durham and Stewarts and Lloyds had merged as British Steel and Tube Ltd before vesting took place. BSC later arranged an exchange deal with [[GKN]], the parent company of GKN Steel, under which BSC acquired [[Dowlais Ironworks]] at [[Merthyr Tydfil]] and GKN took over BSC's [[Brymbo Steelworks]] near [[Wrexham]].

Dorman Long, South Durham and Stewarts and Lloyds had merged as British Steel and Tube Ltd before vesting took place. BSC later arranged an exchange deal with [[Guest, Keen and Nettlefolds]] Ltd (GKN), the parent company of GKN Steel, under which BSC acquired [[Dowlais Ironworks]] at [[Merthyr Tydfil]] and GKN took over BSC's [[Brymbo Steelworks]] near [[Wrexham]].


===Restructuring===

=== Restructuring ===

According to Blair (1997), British Steel faced serious problems at the time of its formation, including obsolescent plants; plants operating under capacity and thus at low efficiency; outdated technology; price controls that reduced marketing flexibility; soaring coal and oil costs; lack of capital investment funds; and increasing competition on the world market. By the 1970s, the government adopted a policy of keeping employment high in the declining industry. This especially impacted BSC since it was a major employer in a number of depressed regions.<ref>Alasdair M. Blair, "The British iron and steel industry since 1945," Journal of European Economic History Winter 1997, Vol. 26 Issue 3, pp 571–81</ref>

According to Blair (1997), British Steel faced serious problems at the time of its formation, including obsolescent plants; plants operating under capacity and thus at low efficiency; outdated technology; price controls that reduced marketing flexibility; soaring coal and oil costs; lack of capital investment funds; and increasing competition on the world market. By the 1970s, the government adopted a policy of keeping employment high in the declining industry. This especially impacted BSC since it was a major employer in a number of depressed regions.<ref name="Blair"/>


One of the arguments made in favour of nationalisation was that it would enable steel production to be rationalised. This involved concentrating investment on major integrated plants, placed near the coast for ease of access by sea, and closing older, smaller plants, especially those that had been located inland for proximity to coal supplies.

One of the arguments made in favour of nationalisation was that it would enable steel production to be rationalised. This involved concentrating investment on major integrated plants, placed near the coast for ease of access by sea, and closing older, smaller plants, especially those that had been located inland for proximity to coal supplies.
Line 64: Line 66:

* At [[Consett]], the closure of the British Steel works in 1980 marked the end of steel production in [[River Derwent, North East England|Derwent Valley]] and the sharp decline of the area.

* At [[Consett]], the closure of the British Steel works in 1980 marked the end of steel production in [[River Derwent, North East England|Derwent Valley]] and the sharp decline of the area.

* At [[Corby]], the closure of the former Stewarts & Lloyds site in the early-1980s saw the loss of 11,000 jobs, leading to an initial unemployment rate of over 30%.<ref>{{cite web|url=http://www.parliament.the-stationery-office.co.uk/pa/cm200102/cmselect/cmtlgr/603/603ap33.htm|title=Select Committee on Transport, Local Government and the Regions|publisher=HMSO|access-date=23 February 2008|archive-url=https://web.archive.org/web/20131004212607/http://www.parliament.the-stationery-office.co.uk/pa/cm200102/cmselect/cmtlgr/603/603ap33.htm|archive-date=4 October 2013|url-status=live}}</ref>

* At [[Corby]], the closure of the former Stewarts & Lloyds site in the early-1980s saw the loss of 11,000 jobs, leading to an initial unemployment rate of over 30%.<ref>{{cite web|url=http://www.parliament.the-stationery-office.co.uk/pa/cm200102/cmselect/cmtlgr/603/603ap33.htm|title=Select Committee on Transport, Local Government and the Regions|publisher=HMSO|access-date=23 February 2008|archive-url=https://web.archive.org/web/20131004212607/http://www.parliament.the-stationery-office.co.uk/pa/cm200102/cmselect/cmtlgr/603/603ap33.htm|archive-date=4 October 2013|url-status=live}}</ref>

* In Wales, works at East Moors (Cardiff) closed.

* In Wales, works at East Moors (Cardiff) closed in 1978.

*Shotton closure of the heavy end with the loss of over 6,000 jobs.

*Shotton closure of the heavy end with the loss of over 6,000 jobs.

* In Scotland, Western Europe's largest hot [[strip steel]] mill [[Ravenscraig steelworks]], near [[Motherwell]], [[North Lanarkshire]], was closed by British Steel in 1992, leading to high levels of unemployment in the area. It also led to the closure of several local support and satellite businesses, such as the nearby British Steel [[Clydesdale Works]] in [[Mossend]], [[Clyde Alloy]] in [[Netherton, North Lanarkshire|Netherton]] and equipment maker [[Anderson Strathclyde]]. Demolition of the site's landmark blue gasometer in 1996, and the subsequent cleanup operation, has created the largest [[brownfield land|brownfield site]] in [[Europe]]. This huge area between Motherwell and [[Wishaw]] is in line to be transformed into the new town of [[Ravenscraig]], a project partly funded by [[Tata Steel Europe|Corus]].

* In Scotland, Western Europe's largest hot [[strip steel]] mill [[Ravenscraig steelworks]], near [[Motherwell]], [[North Lanarkshire]], was closed by British Steel in 1992, leading to high levels of unemployment in the area. It also led to the closure of several local support and satellite businesses, such as the nearby British Steel [[Clydesdale Works]] in [[Mossend]], [[Clyde Alloy]] in [[Netherton, North Lanarkshire|Netherton]] and equipment maker [[Anderson Strathclyde]]. Demolition of the site's landmark blue gasometer in 1996, and the subsequent cleanup operation, has created the largest [[brownfield land|brownfield site]] in [[Europe]]. This huge area between Motherwell and [[Wishaw]] is in line to be transformed into the new town of [[Ravenscraig]], a project partly funded by [[Tata Steel Europe|Corus]].
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The [[Conservative Party (UK)|Conservative]] manifesto for the [[1987 United Kingdom general election|1987 general election]] noted that "British Steel has more than doubled its productivity since 1979 and made a profit last year for the first time in over ten years."<ref>{{cite web |url=http://www.conservativemanifesto.com/1987/1987-conservative-manifesto.shtml |title=1987 Conservative Party General Election Manifesto |website=conservativemanifesto.com |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20191017200715/http://www.conservativemanifesto.com/1987/1987-conservative-manifesto.shtml |archive-date=17 October 2019 |url-status=live }}</ref>

The [[Conservative Party (UK)|Conservative]] manifesto for the [[1987 United Kingdom general election|1987 general election]] noted that "British Steel has more than doubled its productivity since 1979 and made a profit last year for the first time in over ten years."<ref>{{cite web |url=http://www.conservativemanifesto.com/1987/1987-conservative-manifesto.shtml |title=1987 Conservative Party General Election Manifesto |website=conservativemanifesto.com |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20191017200715/http://www.conservativemanifesto.com/1987/1987-conservative-manifesto.shtml |archive-date=17 October 2019 |url-status=live }}</ref>


{{quote|We will continue the successful programme of privatisation.|source=Conservative Manifesto, 1987}}

{{Blockquote|We will continue the successful programme of privatisation.|source=Conservative Manifesto, 1987}}


Following [[Margaret Thatcher]]'s re-election, on 3 December 1987 the [[Third Thatcher ministry|Conservative government]] formally announced in a statement by [[Kenneth Clarke]], [[Department of Trade and Industry (United Kingdom)|Minister of State for Trade and Industry]], that it intended to [[privatization|privatise]] the British Steel Corporation.<ref>{{Cite Hansard |house=House of Commons |title=British Steel Corporation (Privatisation) |url=https://api.parliament.uk/historic-hansard/commons/1987/dec/03/british-steel-corporation-privatisation |date=3 December 1987 |column_start=1107 |column_end=1108 |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20190528105244/https://api.parliament.uk/historic-hansard/commons/1987/dec/03/british-steel-corporation-privatisation |archive-date=28 May 2019 |url-status=live }}</ref>

Following [[Margaret Thatcher]]'s re-election, on 3 December 1987 the [[Third Thatcher ministry|Conservative government]] formally announced in a statement by [[Kenneth Clarke]], [[Department of Trade and Industry (United Kingdom)|Minister of State for Trade and Industry]], that it intended to [[privatization|privatise]] the British Steel Corporation.<ref>{{cite Hansard |house=House of Commons |title=British Steel Corporation (Privatisation) |url=https://api.parliament.uk/historic-hansard/commons/1987/dec/03/british-steel-corporation-privatisation |date=3 December 1987 |column_start=1107 |column_end=1108 |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20190528105244/https://api.parliament.uk/historic-hansard/commons/1987/dec/03/british-steel-corporation-privatisation |archive-date=28 May 2019 |url-status=live }}</ref>


{{quote|… the Government are committed to returning successful state industries such as steel to the private sector as soon as practicable. It is quite apparent that the British Steel Corporation has now reached the stage where it would benefit from a return to a fully commercial environment. I am therefore pleased to announce that I am setting in hand the work necessary to privatise the corporation as soon as possible, subject to market conditions.

{{Blockquote|… the Government are committed to returning successful state industries such as steel to the private sector as soon as practicable. It is quite apparent that the British Steel Corporation has now reached the stage where it would benefit from a return to a fully commercial environment. I am therefore pleased to announce that I am setting in hand the work necessary to privatise the corporation as soon as possible, subject to market conditions.


[…]

[…]
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I believe that early privatisation and full commercial freedom will enable the company and its work force to be best placed to go on to further achievements and to secure a firmly based competitive industry with a long-term future.|source=[[Kenneth Clarke]], Minister of State for Trade and Industry}}

I believe that early privatisation and full commercial freedom will enable the company and its work force to be best placed to go on to further achievements and to secure a firmly based competitive industry with a long-term future.|source=[[Kenneth Clarke]], Minister of State for Trade and Industry}}


{{anchor|British Steel Act 1988}}

{{Infobox UK legislation

| short_title = British Steel Act 1988

| type = Act

| parliament = Parliament of the United Kingdom

| long_title = An Act to provide for the vesting of the property, rights and liabilities of the British Steel Corporation in a company nominated by the Secretary of State and for the subsequent dissolution of the Corporation; and for connected purposes.

| year = 1988

| citation = 1988 c. 35

| introduced_commons =

| introduced_lords =

| territorial_extent =

| royal_assent = 29 July 1988

| commencement =

| expiry_date =

| repeal_date =

| amends =

| replaces =

| amendments =

| repealing_legislation =

| related_legislation =

| status =

| legislation_history =

| theyworkforyou =

| millbankhansard =

| original_text =

| revised_text =

| use_new_UK-LEG =

| UK-LEG_title = British Steel Act 1988

| collapsed = yes

}}

On 5 September 1988<ref>{{cite web |url=http://www.legislation.gov.uk/uksi/1988/1375/made |title=The British Steel Act 1988 (Appointed Day) Order 1988}}</ref> the assets, rights and liabilities of British Steel Corporation were transferred to British Steel plc,<ref>{{cite web |url=http://www.legislation.gov.uk/uksi/1988/1376/made |title=The British Steel Act 1988 (Nominated Company) Order 1988}}</ref> registered under the Companies Act as company number 2280000, by the British Steel Act 1988.<ref>{{cite web |url=https://www.legislation.gov.uk/ukpga/1988/35 |title=British Steel Act 1988 |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20110101130444/http://www.legislation.gov.uk/ukpga/1988/35 |archive-date=1 January 2011 |url-status=live }}</ref>

On 5 September 1988<ref>{{cite web |url=http://www.legislation.gov.uk/uksi/1988/1375/made |title=The British Steel Act 1988 (Appointed Day) Order 1988}}</ref> the assets, rights and liabilities of British Steel Corporation were transferred to British Steel plc,<ref>{{cite web |url=http://www.legislation.gov.uk/uksi/1988/1376/made |title=The British Steel Act 1988 (Nominated Company) Order 1988}}</ref> registered under the Companies Act as company number 2280000, by the British Steel Act 1988.<ref>{{cite web |url=https://www.legislation.gov.uk/ukpga/1988/35 |title=British Steel Act 1988 |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20110101130444/http://www.legislation.gov.uk/ukpga/1988/35 |archive-date=1 January 2011 |url-status=live }}</ref>


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British Steel employees were given a free allocation of shares, and offered two free shares for each they purchased up to £165, discounted shares up to £2,200, and priority on applying for shares up to £10,000.<ref name="NAO"/>

British Steel employees were given a free allocation of shares, and offered two free shares for each they purchased up to £165, discounted shares up to £2,200, and priority on applying for shares up to £10,000.<ref name="NAO"/>


Trading in shares opened on the [[London Stock Exchange]] on 5 December 1988.<ref>{{cite web |url=https://britishsteel.co.uk/media/9266/history-of-british-steel.pdf |title=History of British Steel |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20171119045928/http://britishsteel.co.uk/media/9266/history-of-british-steel.pdf |archive-date=19 November 2017 |url-status=live }}</ref>

Dealing in shares opened on the London Stock Exchange on 5 December 1988.<ref>{{cite web |url=https://britishsteel.co.uk/media/9266/history-of-british-steel.pdf |title=History of British Steel |access-date=28 May 2019 |archive-url=https://web.archive.org/web/20171119045928/http://britishsteel.co.uk/media/9266/history-of-british-steel.pdf |archive-date=19 November 2017 |url-status=live }}</ref>


===Post-privatisation===

=== Post-privatisation ===

British Steel merged with the [[Netherlands|Dutch]] steel producer [[Koninklijke Hoogovens]] to form [[Tata Steel Europe|Corus]] on 6 October 1999.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/362530.stm |title=British Steel merges with Dutch rival |publisher=[[BBC News]]|date=7 June 1999|access-date=24 September 2011}}</ref> Corus itself was taken over in March 2007 by the Indian steel operator [[Tata Steel]].<ref>{{cite news |title=India's Tata wins race for Corus |url=http://news.bbc.co.uk/2/hi/business/6315823.stm |publisher=BBC News|date=31 January 2007 |access-date=26 November 2007 |archive-url=https://web.archive.org/web/20081122010917/http://news.bbc.co.uk/2/hi/business/6315823.stm |archive-date=22 November 2008 |url-status=live }}</ref>

The privatised company later merged with the [[Netherlands|Dutch]] steel producer [[Koninklijke Hoogovens]] to form [[Tata Steel Europe|Corus Group]] on 6 October 1999.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/362530.stm |title=British Steel merges with Dutch rival |publisher=BBC |date=7 June 1999|access-date=24 September 2011}}</ref> Corus itself was taken over in March 2007 by the Indian steel operator [[Tata Steel]].<ref>{{cite news |title=India's Tata wins race for Corus |url=http://news.bbc.co.uk/2/hi/business/6315823.stm |publisher=BBC |date=31 January 2007 |access-date=26 November 2007 |archive-url=https://web.archive.org/web/20081122010917/http://news.bbc.co.uk/2/hi/business/6315823.stm |archive-date=22 November 2008 |url-status=live }}</ref>


==Chairmen==

== Chairmen ==

*[[Julian Mond, 3rd Baron Melchett|Julian, Lord Melchett]] (1967–1973)

*[[Julian Mond, 3rd Baron Melchett|Lord Melchett]] (1967–1973)

*[[Monty Finniston]] (1973–1976)

*[[Monty Finniston]] (1973–1976)

*[[Charles Hyde Villiers|Charles Villiers]] (1976–1980)

*[[Charles Hyde Villiers|Charles Villiers]] (1976–1980)
Line 99: Line 131:

*[[Robert Haslam (industrialist)|Robert Haslam]] (1983–1986)

*[[Robert Haslam (industrialist)|Robert Haslam]] (1983–1986)

*[[Robert Scholey]] (1986–1992)

*[[Robert Scholey]] (1986–1992)

*Sir Brian Moffat (1992-1999)

*Sir Brian Moffat (1992–1999)


Ian MacGregor later became famous for his role as Chairman of the [[National Coal Board]] during the [[UK miners' strike (1984–1985)]]. During the strike the "[[Battle of Orgreave]]" took place at British Steel's coking plant.

Ian MacGregor later became famous for his role as Chairman of the [[National Coal Board]] during the [[UK miners' strike (1984–1985)]]. During the strike the "[[Battle of Orgreave]]" took place at British Steel's coking plant.
Line 108: Line 140:

British Steel had agreed a sponsorship deal with [[Middlesbrough F.C.|Middlesbrough Football Club]] during the [[1994-95 in English football|1994–95 season]], with a view to British Steel-sponsored Middlesbrough shirts making their appearance [[1995-96 in English football|the following season]]. But the sponsorship deal was terminated before it commenced after it was revealed that [[United Kingdom|British]] steel only made up a tiny fraction of steel used in construction of the stadium, and that the bulk of the steel had been imported from [[Germany]].

British Steel had agreed a sponsorship deal with [[Middlesbrough F.C.|Middlesbrough Football Club]] during the [[1994-95 in English football|1994–95 season]], with a view to British Steel-sponsored Middlesbrough shirts making their appearance [[1995-96 in English football|the following season]]. But the sponsorship deal was terminated before it commenced after it was revealed that [[United Kingdom|British]] steel only made up a tiny fraction of steel used in construction of the stadium, and that the bulk of the steel had been imported from [[Germany]].


==In popular culture==

== In popular culture ==

The English [[rock music|rock]] band [[XTC]] mentioned British Steel in their 1979 song [[Making Plans for Nigel]].

The English [[rock music|rock]] band [[XTC]] mentioned British Steel in their 1979 song [[Making Plans for Nigel]].


The heavy metal band Judas Priest named their 1980 album ''[[British Steel (album)|British Steel]]'' after the British Steel Corporation. Lead singer Rob Halford explained in an interview that the 'sounds of heavy metal' have been with him since childhood, due to the close proximity of the BSC plant where he grew up.
⚫

==References==

== See also ==

* [[British Iron and Steel Research Association]]

⚫

== References ==

{{reflist}}

{{reflist}}


==Bibliography==

== Bibliography ==

*{{cite journal |last=Blair |first=Alasdair M. |title=The British iron and steel industry since 1945 |journal=Journal of European Economic History| issue=3 |date=Winter 1997|volume=26 |pages= 571–81}}

*{{cite journal |last=Blair |first=Alasdair&nbsp;M. |title=The British iron and steel industry since 1945 |journal=Journal of European Economic History| issue=3 |date=Winter 1997|volume=26 |pages= 571–81}}


==Further reading==

==Further reading==

* [https://archive.org/details/jones-worker-directors-speak Bank, John, and Jones, Ken, ''Worker Directors Speak: The British Steel Corporation Employee Directors'' (Gower Press, Farnborough, 1977)]

* {{cite book|author=Brady, Robert A.|title=Crisis in Britain. Plans and Achievements of the Labour Government|url=https://archive.org/details/crisisinbritainp0000brad|url-access=registration|year=1950|publisher=University of California Press|access-date=5 June 2013}}, on nationalization 1945–50, pp 183–235

* {{cite book|last=Brady |first=Robert&nbsp;A.|title=Crisis in Britain. Plans and Achievements of the Labour Government|url=https://archive.org/details/crisisinbritainp0000brad|url-access=registration|year=1950|publisher=University of California Press|access-date=5 June 2013}}, on nationalization 1945–50, pp 183–235

*Dudley, G. F., and J. J. Richardson, eds. ''Politics and Steel in Britain, 1967–1988: The Life and Times of the British Steel Corporation'' (1990)

*Dudley, G. F., and J. J. Richardson, eds. ''Politics and Steel in Britain, 1967–1988: The Life and Times of the British Steel Corporation'' (1990)

*[https://archive.org/details/jones-human-face-of-change Jones, Ken. ''The Human Face of Change: Social Responsibility and Rationalization at British Steel'' (Institute of Personnel Management, London, 1974)]

*Rhodes, Martin; Wright, Vincent.『The European Steel Unions and the Steel Crisis, 1974–84: A Study in the Demise of Traditional Unionism,』''British Journal of Political Science,'' April 1988, Vol. 18 Issue 2, pp 171–195 [https://www.jstor.org/stable/193906 in JSTOR]

*Rhodes, Martin; Wright, Vincent.『The European Steel Unions and the Steel Crisis, 1974–84: A Study in the Demise of Traditional Unionism,』''British Journal of Political Science,'' April 1988, Vol. 18 Issue 2, pp 171–195 [https://www.jstor.org/stable/193906 in JSTOR]

*Scheuerman, William. ''The Steel Crisis: The Economics and Politics of a Declining Industry'' (1986)

*Scheuerman, William. ''The Steel Crisis: The Economics and Politics of a Declining Industry'' (1986)


==External links==

== External links ==

*[https://web.archive.org/web/20081121084309/http://www.competition-commission.org.uk/rep_pub/reports/1988/229britishsteel.htm British Steel Corporation], 1988 [[Competition Commission]] report

*[https://web.archive.org/web/20081121084309/http://www.competition-commission.org.uk/rep_pub/reports/1988/229britishsteel.htm British Steel Corporation], 1988 [[Competition Commission]] report

*[https://web.archive.org/web/20090506085317/http://www.competition-commission.org.uk/rep_pub/reports/1990/268britishsteel.htm British Steel plc and C Walker & Sons (Holdings) Ltd], 1990 [[Competition Commission]] report

*[https://web.archive.org/web/20090506085317/http://www.competition-commission.org.uk/rep_pub/reports/1990/268britishsteel.htm British Steel plc and C Walker & Sons (Holdings) Ltd], 1990 [[Competition Commission]] report
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{{Authority control}}

{{Authority control}}


{{DEFAULTSORT:British Steel (1967-1999)}}
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[[Category:Companies formerly listed on the London Stock Exchange]]
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[[Category:Steel companies of the United Kingdom]]

[[Category:Defunct companies of the United Kingdom]]

[[Category:Defunct companies of the United Kingdom]]

[[Category:Former nationalised industries of the United Kingdom]]

[[Category:Former nationalised industries of the United Kingdom]]

[[Category:British companies established in 1967]]

[[Category:Manufacturing companies established in 1967]]

[[Category:Manufacturing companies established in 1967]]

[[Category:Manufacturing companies disestablished in 1999]]

[[Category:Manufacturing companies disestablished in 1999]]
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[[Category:Steel companies of the United Kingdom]]
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[[Category:Tata Steel Europe]]

[[Category:1967 establishments in England]]

[[Category:1967 establishments in England]]

[[Category:1999 disestablishments in England]]

[[Category:1999 disestablishments in England]]
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[[Category:Companies formerly listed on the London Stock Exchange]]

[[Category:British companies disestablished in 1999]]

[[Category:1999 mergers and acquisitions]]
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[[Category:Tata Steel Europe]]

Latest revision as of 13:51, 28 May 2024

This article is about the nationalised steel company formed 1967. For the company founded in 2016, see British Steel Limited. For the album by Judas Priest, see British Steel (album).

British Steel plc
IndustrySteel
Founded1967
Defunct6 October 1999
FateMerger
SuccessorCorus

British Steel was a major British steel producer. It originated from the nationalised British Steel Corporation (BSC), formed in 1967, which was privatised as a public limited company, British Steel plc, in 1988. It was once a constituent of the FTSE 100 Index. The company merged with Koninklijke Hoogovens to form Corus Group in 1999.

History[edit]

Alasdair M. Blair (1997), Professor of International Relations and Head of the Department of Politics and Public Policy at De Montfort University, has explored the history of British Steel since the Second World War to evaluate the impact of government intervention in a market economy. He suggests that entrepreneurship was lacking in the 1940s; the government could not persuade the industry to upgrade its plants. For generations, the industry had followed a piecemeal growth pattern that proved relatively inefficient in the face of world competition.

The Labour Party came to power at the 1945 general election, pledging to bring several industries into state ownership. In 1946, it put the first steel development plan into practice with the aim of increasing capacity. It passed the Iron and Steel Act 1949, which meant nationalisation of the industry, as the government bought out the shareholders, and created the Iron and Steel Corporation of Great Britain. American Marshall Plan aid in 1948–50 reinforced modernisation efforts and provided funding for them. However, the nationalisation was reversed by the Conservative government after 1952.

The industry was re-nationalised in 1967 under another Labour government, becoming British Steel Corporation (BSC). But by then, 20 years of political manipulation had left companies, such as British Steel, with serious problems: a complacency with existing equipment, plants operating below full capacity (hence the low efficiency), poor-quality assets, outdated technology, government price controls, higher coal and oil costs, lack of funds for capital improvement, and increasing competition on the world market.

By the 1970s, the Labour government's main goal for the declining industry was to keep employment high. Since British Steel was a major employer in depressed regions, it was decided to keep many mills and facilities operating at a loss. In the 1980s, Conservative Prime Minister Margaret Thatcher re-privatised BSC as British Steel. Under private control, the company dramatically cut its workforce and underwent a radical reorganisation and massive capital investment to again become competitive in the world marketplace.[1]

Nationalisation[edit]

BSC was formed from the assets of former private companies which had been nationalised, largely under the Labour government of Harold Wilson, on 28 July 1967.[2] Wilson's was the second attempt at nationalisation; the post-war government of Clement Attlee had created the Iron and Steel Corporation of Great Britain in 1951 taking public ownership of 80 companies but this had been largely reversed by the following Conservative governments of the 1950s with only Britain's largest steel company, Richard Thomas and Baldwins, remaining in public ownership.

British Steel Hartlepool Works, formerly South Durham Steel & Iron Company, in 1970

BSC was established under the Iron and Steel Act 1967, which vested in the Corporation the shares of the fourteen major UK-based steel companies then in operation, being:

At the time of its formation, BSC comprised around ninety per cent of the UK's steelmaking capacity; it had around 268,500 employees and around 200 wholly or partly-owned subsidiaries based in the United Kingdom, Australia, New Zealand, Canada, Africa, South Asia, and South America.[3]

Dorman Long, South Durham and Stewarts and Lloyds had merged as British Steel and Tube Ltd before vesting took place. BSC later arranged an exchange deal with Guest, Keen and Nettlefolds Ltd (GKN), the parent company of GKN Steel, under which BSC acquired Dowlais IronworksatMerthyr Tydfil and GKN took over BSC's Brymbo Steelworks near Wrexham.

Restructuring[edit]

According to Blair (1997), British Steel faced serious problems at the time of its formation, including obsolescent plants; plants operating under capacity and thus at low efficiency; outdated technology; price controls that reduced marketing flexibility; soaring coal and oil costs; lack of capital investment funds; and increasing competition on the world market. By the 1970s, the government adopted a policy of keeping employment high in the declining industry. This especially impacted BSC since it was a major employer in a number of depressed regions.[1]

One of the arguments made in favour of nationalisation was that it would enable steel production to be rationalised. This involved concentrating investment on major integrated plants, placed near the coast for ease of access by sea, and closing older, smaller plants, especially those that had been located inland for proximity to coal supplies.

From the mid-1970s, British Steel pursued a strategy of concentrating steelmaking in five areas: South Wales, South Yorkshire, Scunthorpe, Teesside and Scotland. This policy continued following the Conservative victory at the 1979 general election. Other traditional steelmaking areas faced cutbacks. Under the Labour government of James Callaghan, a review by Lord Beswick had led to the reprieve of the so-called 'Beswick plants', for social reasons, but subsequent governments were obliged under EU rules to withdraw subsidies. Major changes resulted across Europe, including in the UK:

Privatisation[edit]

The Conservative manifesto for the 1987 general election noted that "British Steel has more than doubled its productivity since 1979 and made a profit last year for the first time in over ten years."[5]

We will continue the successful programme of privatisation.

— Conservative Manifesto, 1987

Following Margaret Thatcher's re-election, on 3 December 1987 the Conservative government formally announced in a statement by Kenneth Clarke, Minister of State for Trade and Industry, that it intended to privatise the British Steel Corporation.[6]

… the Government are committed to returning successful state industries such as steel to the private sector as soon as practicable. It is quite apparent that the British Steel Corporation has now reached the stage where it would benefit from a return to a fully commercial environment. I am therefore pleased to announce that I am setting in hand the work necessary to privatise the corporation as soon as possible, subject to market conditions.

[…]

I believe that early privatisation and full commercial freedom will enable the company and its work force to be best placed to go on to further achievements and to secure a firmly based competitive industry with a long-term future.

— Kenneth Clarke, Minister of State for Trade and Industry

British Steel Act 1988
Act of Parliament
Parliament of the United Kingdom
Long titleAn Act to provide for the vesting of the property, rights and liabilities of the British Steel Corporation in a company nominated by the Secretary of State and for the subsequent dissolution of the Corporation; and for connected purposes.
Citation1988 c. 35
Dates
Royal assent29 July 1988
Text of the British Steel Act 1988 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk.

On 5 September 1988[7] the assets, rights and liabilities of British Steel Corporation were transferred to British Steel plc,[8] registered under the Companies Act as company number 2280000, by the British Steel Act 1988.[9]

The government retained a special share which carried no voting rights but until 31 December 1993, permitted the government to stop any one party controlling more than 15% of the shares.[10]

British Steel employees were given a free allocation of shares, and offered two free shares for each they purchased up to £165, discounted shares up to £2,200, and priority on applying for shares up to £10,000.[10]

Dealing in shares opened on the London Stock Exchange on 5 December 1988.[11]

Post-privatisation[edit]

The privatised company later merged with the Dutch steel producer Koninklijke Hoogovens to form Corus Group on 6 October 1999.[12] Corus itself was taken over in March 2007 by the Indian steel operator Tata Steel.[13]

Chairmen[edit]

Ian MacGregor later became famous for his role as Chairman of the National Coal Board during the UK miners' strike (1984–1985). During the strike the "Battle of Orgreave" took place at British Steel's coking plant.

Sponsorships[edit]

In 1971 British Steel sponsored Sir Chay Blyth in his record-making non-stop circumnavigation against the winds and currents, known as 'The Impossible Voyage'. In 1992 they sponsored the British Steel Challenge, the first of a series of 'wrong way' races for amateur crews.

British Steel had agreed a sponsorship deal with Middlesbrough Football Club during the 1994–95 season, with a view to British Steel-sponsored Middlesbrough shirts making their appearance the following season. But the sponsorship deal was terminated before it commenced after it was revealed that British steel only made up a tiny fraction of steel used in construction of the stadium, and that the bulk of the steel had been imported from Germany.

In popular culture[edit]

The English rock band XTC mentioned British Steel in their 1979 song Making Plans for Nigel.

The heavy metal band Judas Priest named their 1980 album British Steel after the British Steel Corporation. Lead singer Rob Halford explained in an interview that the 'sounds of heavy metal' have been with him since childhood, due to the close proximity of the BSC plant where he grew up.

See also[edit]

References[edit]

  1. ^ a b Blair, Alasdair M. (Winter 1997). "The British iron and steel industry since 1945". Journal of European Economic History. 26 (3): 571–81.
  • ^ Mény, Y.; Wright, V.; Rhodes, M. (1987). The Politics of Steel: Western Europe and the Steel Industry in the Crisis Years (1974–1984). Walter de Gruyter. p. 315. ISBN 9783110105179. Retrieved 5 October 2014.
  • ^ "UK Steel:Key dates". Archived from the original on 24 January 2008. Retrieved 23 February 2008.
  • ^ "Select Committee on Transport, Local Government and the Regions". HMSO. Archived from the original on 4 October 2013. Retrieved 23 February 2008.
  • ^ "1987 Conservative Party General Election Manifesto". conservativemanifesto.com. Archived from the original on 17 October 2019. Retrieved 28 May 2019.
  • ^ "British Steel Corporation (Privatisation)". Parliamentary Debates (Hansard). House of Commons. 3 December 1987. col. 1107–1108. Archived from the original on 28 May 2019. Retrieved 28 May 2019.
  • ^ "The British Steel Act 1988 (Appointed Day) Order 1988".
  • ^ "The British Steel Act 1988 (Nominated Company) Order 1988".
  • ^ "British Steel Act 1988". Archived from the original on 1 January 2011. Retrieved 28 May 2019.
  • ^ a b "National Audit Office: Sale of Government Shareholding in British Steel plc" (PDF). 8 February 1990. Archived (PDF) from the original on 28 May 2019. Retrieved 28 May 2019.
  • ^ "History of British Steel" (PDF). Archived (PDF) from the original on 19 November 2017. Retrieved 28 May 2019.
  • ^ "British Steel merges with Dutch rival". BBC. 7 June 1999. Retrieved 24 September 2011.
  • ^ "India's Tata wins race for Corus". BBC. 31 January 2007. Archived from the original on 22 November 2008. Retrieved 26 November 2007.

    • Bibliography[edit]

    Further reading[edit]

    External links[edit]


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