Sheffield Steelmaker Forges Rescue Plan

Britain's beleaguered steel industry will receive a sliver of good news on Thursday with confirmation of a rescue deal for a ‎family-owned company after nine months in administration.

Sky News understands that Kiveton Park Steel, whose major customers include Delphi Automotive (NYSE: DLPH - news) , the global car-parts manufacturer, will be acquired by Henry Dickinson, an owner of several UK industrial businesses.

The deal is expected to salvage roughly 50 jobs out of a workforce of more‎ than 100 before Sheffield-based Kiveton Park Steel fell into administration last September.

Sources said the rescue would enable the company to continue to trade from its existing premises, a 15-acre site in Sheffield.

Kiveton Park Steel makes and processes a number of products used across the UK's car manufacturing sector, which has warned about the impact of Brexit following last week's referendum on European Union membership.

Administrators at FRP Advisory - which is also working on the crisis at BHS after being drafted in last week - ‎are understood to have held extensive talks with more than a dozen potential buyers since last autumn.

Cashflow problems caused by a downturn in trading have triggered a crisis across Britain's steel sector, the most prominent example of which is Tata Steel (BSE: TATASTEEL.BO - news) 's plan to offload its UK operations.

Kiveton Park Steel has traded continuously since 1922, and under the administrator's stewardship secured two financial lifelines from major customers, including Delphi.

‎The car-parts manufacturer is now said to have agreed further financing arrangements with Kiveton Park Steel.