Tata Steel has announced the sale of its Long Products Europe business to Greybull Capital.

The deal includes the steel plant in Scunthorpe and will help protect 4,400 jobs in the UK.

It is understood Greybull is preparing a £400 million investment package to turnaround the Scunthorpe facility.

Other UK-based assets of the deal include two mills in Teesside, an engineering workshop in Workington, a design consultancy in York, and associated distribution facilities, as well as a mill in northern France.

Bimlendra Jha, Executive Chairman of the stand-alone Long Products Europe business, said: "Today marks a significant milestone in the sale of the Long Products Europe business. This sale is the best possible outcome for employees who have worked relentlessly to ensure the business's survival, and helped to make it attractive to a potential buyer."

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However, while workers will be asked to accept a pay cut and altered arrangements to their pensions, union GMB said its members' campaigning efforts over the last two years were a 'major factor' in the deal's success.

Dave Hulse, GMB National Officer, said: "These have been really difficult times for GMB members over many months of uncertainty. GMB welcomes the announcement that Greybull Capital has reached an agreement with Tata Steel that safeguards our members' jobs, especially given the recent announcement that Tata will sell its entire UK operation.

"The joint trade unions have been in negotiations over a long period of time, looking at temporary agreements to make sure that the first 12 months of the sale are successful. Our members must be congratulated for their pure determination in campaigning over the last 2 years. Their efforts were a major factor in the success of the sale."

Business Secretary Sajid Javid said: "Today's announcement is a step in the right direction for the long-term future of British steel manufacturing in Scunthorpe."

(LM/JP)