§ Mr. Budgenasked the Secretary of State for Trade and Industry whether he has received formal proposals for restructuring the engineering steels industry.
§ Mr. Norman LamontYes. As the first stage of what is intended as a wider rationalisation of the industry, BSC,468W Guest Keen and Nettlefolds plc and Lonrho plc have today announced the formation of a joint company which has entered into a conditional agreement for the acquisition of Lonrho's 100 per cent. shareholding in Hadfields Ltd. Despite the recent closure of Round Oak and London works, substantial overcapacity remains in the engineering steels industry, and the companies envisage further closures.
Government financial assistance towards this further restructuring will be subject to detailed appraisal in the usual way, and will be subject to the approval of the European Commission.