The Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses, is considering the acquisition of troubled UK steelmaker British Steel, CEO Michael Flacks told McCloskey on 3 February.
Flacks Group is in the early stages of the potential purchase with no agreement achieved with the UK authorities yet.
In April 2025, when British Steel faced the possibility of complete closure, the UK government intervened, taking direct control of its operations. The UK government is now focused on keeping the Scunthorpe and Teesside sites operating, securing raw material supplies, and reviewing previously proposed decarbonisation plans.
Flacks Group plans to replace the existing blast furnaces (BFs) and basic oxygen furnaces (BOFs) at British Steel with electric-arc furnaces, achieving a significant reduction in CO2 emissions.
The plans are in line with the project initially proposed by China’s Jingye Group, the company in control of British Steel before the state intervention. It had planned to install one EAF at the Scunthorpe site, closing its BF/BOF operations, and another EAF at the Teesside rolling mill.
The Scunthorpe site operates two BFs with a combined installed capacity of approximately 3 mt/y. The other two remain inactive.
Late last year Flacks Group emerged as the preferred bidder for Italian steelmaker Acciaierie d’Italia (ADI). The company plans to double steel output at ADI to 4 mt within one year. As part of the decarbonisation initiative Flacks Group plans to replace existing BFs with two EAFs and keep only one BF running.
Michael Flacks said he expects the ADI deal will be approved by the end of April this year.
