The company that acquired Tata Steel Projects in Workington has announced it is on track to return to profit in this financial year.

Private equity firm Greybull Capital acquired Tata Steel's long products division in June, and revived the British Steel for the business.

The firm marked 100 days since the deal by announcing it had completed the first stage of a turnaround plan that includes efficiency and cost-cutting measures, 270 new employees and a £50m capital investment.

As well as the Workington operation, which now trades as TSP Engineering, the business includes Scunthorpe steelworks and sites in Teesside and York.

British Steel said that suppliers and customers have been keen to do business, including Caterpillar, Toyota, Network Rail, Cargill, William Hare, Apollo, Vesuvius and Elland Steel Structures.

Executive chairman Roland Junck said: “I am delighted to be able to announce that we have hit our performance targets and returned the business to profitability in our first 100 days as an independent company.

“These results are testament to the hard work of our employees and their determination to implement the turnaround plan.

“I believe we are now better placed to capitalise on our strong heritage, vastly experienced and skilled workforce and world-class products.

“The transformation of our business will make sure we maintain the pace of growth and move forward as an outward-looking profit-making business. But while our future remains firmly in our hands, the UK steel industry still faces many challenges.

“That is why we are pleased to remain in constructive dialogue with the Government about the strategy needed to support British Steel and ensure that it is operating on a level playing field.”

TSP Engineering employs 220 people at Derwent Howe, Workington, operating one of the largest and most comprehensively-equipped manufacturing facilities in the UK. It offers design, fabrication, machining, fitting, assembly and testing with a floor capacity of 19,200sq metres. The business is a key supplier to the nuclear, defence and security, oil and gas, industrial and steel making, and construction sectors.