British Steel May Sell Forgings

The company said on Friday its Bromsgrove-based forgings business, which has annual revenues of about 150 million and employs 2,100 people, had been judged as non-core'' and was up for sale.

British Steel said it was discussing a sale with fewer than 10'' interested groups. A price has not been announced but it is thought the forging business could fetch 40 million--60 million. British Steel Forgings has invested heavily in machining technology to shape parts to the carmaker's requirements after forging.

Potential bidders are thought to include non-UK steel and components groups such as Thyssen of Germany and Usinor Sacilor of France. Itochu, the Japanese trading house with extensive manufacturing interests, several of which are in Britain, is another possible contender. Other potential purchasers are Firth Rixson, a Sheffield-based engineering company which is another large automotive supplier, and Aurora, a Sheffield forging company owned by Australian National Industries.

Roger Meacham, president of the Confederation of British Forgers, the main trade body for the industry, said British Steel's forging business was a very progressive company''.

It has six main plants, split between several businesses which include the names Garringtons, Smethwick Drop Forgings, Scottish Stampings and Smith-Clayton. The main sites are in the Midlands and Scotland.Apart from selling forgings to automotive companies for products such as gearbox parts, steering racks and axles, the business is also an important supplier to makers of aerospace engines, including Rolls-Royce.