BS. Base Grp.

RNS No 5459t
BRITISH STEEL PLC
16 September 1999
                   

    BRITISH STEEL AGREES #83 MILLION PURCHASE OF SOGERAIL
                              
British Steel has reached agreement with the French steel
group Usinor for the purchase of Usinor's rail manufacturer,
Sogerail, and its associated sales company, Materiel de Voie
(MDV). The #83 million cash purchase makes British Steel the
world's number one supplier of rail and associated products
and services.

Commenting on the purchase of Sogerail, Mr John Bryant,
Chief Executive of British Steel plc, said, "This is a
further example of extending our market presence and
manufacturing base in Europe and provides the opportunity to
build an even stronger global position in rail products and
services in order to strengthen our support for customers.
The synergy between the two rail operations is excellent and
there are immediate opportunities for global growth."


The Sogerail rail  mill  is based in  Hayange, Lorraine and
MDV is  located  in Paris. The company has 520 employees
with total annual sales of around 300,000 tonnes.  British
Steel's existing rail mill is located in Workington,
Cumbria, where it employs 460 people and has sales of some
220,000 tonnes a year. A further 740 people are employed in
the other businesses of the Railway & Foundry Products group
located in Workington, York, Motherwell, and Scunthorpe.


Both the UK and French based activities will be run as a
single integrated business with  Paul Waterhouse  as  its
Managing Director.

Note
The transaction has been given regulatory approval by the
European Commission

Further Information
Investor & Media Relations    +44 (0) 171 314 5503/5502
British Steel

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