Sev.en Global Investments, owned by Czech billionaire Pavel Tykač, has suggested the UK government should consider a single buyer for both British Steel and Speciality Steel UK (SSUK), a move that would create the country's largest steelmaker. The company, which already owns the UK's largest electric steelworks in Cardiff, plans to invest £100m in the UK and has the capacity to invest 'hundreds of millions of pounds' more under its 7 Steel brand.
Alan Svoboda, Sev.en's chief executive, told the Guardian that the government should seek a large company with steel production experience to take over British Steel's Scunthorpe plant and SSUK's electric arc furnace in South Yorkshire. The government took control of British Steel in April last year over fears its Chinese owners would close it, and SSUK was placed under official receivership in August after being declared 'hopelessly insolvent'.
Svoboda declined to discuss specific talks but said a combined sale 'might be a much more attractive solution' if it required less taxpayer support. He added that Sev.en has a long-term view and could be a 'solid partner' to achieve ambitious goals. Any bid would require the government to abandon exclusive talks to sell SSUK to Norwegian startup Blastr, and to reach a compensation deal with British Steel's Chinese owner, Jingye.
Sev.en's planned £100m investment includes potentially a new hydrogen-powered furnace in Cardiff. Svoboda noted that the UK's 50% protectionist tariffs on steel imports have made the company 'excited to make more investment'. He said the steel industry is 'not yet out of the bottom of the cycle' but that Sev.en is a 'big believer' in the UK steel industry.
If successful, Sev.en would overtake Tata Steel as the UK's largest steelmaker, making Tykač a key player in UK industry. Tykač, worth an estimated $8.9bn, started as a computer distributor before building the Sev.en energy group. Svoboda said Sev.en Global Investments owns assets worth $3bn, including fossil fuel assets worldwide.
