Around 300 jobs are to be created and 1,700 jobs protected at steel plants in Rotherham, Stocksbridge and Brinsworth after Liberty House announced a £100m take over of Tata Speciality Steels UK.
Liberty said they would also invest £20m on plant equipment in the first year, giving them the largest furnace capacity in the UK.
They say this will immediately boost competitiveness and output in an international market.
Smaller sites at Bolton, Lancashire and Wednesbury in the West Midlands and two distribution centres in China will also be protected and the business has been relaunched as Liberty Speciality Steels.
The plants produce high-value steels that are used to make cars, aircraft, industrial machinery and equipment for the oil and gas industry.
Sanjeev Gupta, executive chairman of Liberty House said: “The Speciality Steels business is a global leader in its field, with a highly-skilled and well-motivated workforce and we are eager to invest so it can grow and achieve its full potential.
“By investing to acquire Speciality Steels we are casting a big vote of confidence in the future of British industry. With the right business model and an innovative approach, the UK steel and engineering sectors can recover and thrive. The Government is now pursuing a new post-Brexit industrial strategy and steel must be at the heart of that strategy,” he added.
Jon Bolton, who has been appointed chief executive of Liberty Speciality Steels, said the business already had a strong market reputation thanks to a combination of advanced equipment capability and a skilled and motivated workforce.
He said: “Through increased output and improved positions in the UK, North American and EU markets, the business can improve its competitiveness and re-establish itself as a global force in the supply of engineering steels.”
He added: “We will be running the business with greater focus and a strong vision and will be capitalising on recent investment in state-of-the-art steel-making facilities to strengthen our position in technically-challenging markets. We are also in discussion with the trade unions on how we can work together to facilitate our ambitious growth plans.”