Jingye buys British Steel and saves 2000 jobs

Jingye, the Chinese industrial conglomerate has bought British Steel for £50m which could save up to 4000 jobs and end months of uncertainty at the second largest UK steelmaker, which collapsed in May 2019.

It is an irony that ultimately it was upto a Chinese firm to rescue British Steel, given the fact that they flooded the market with cheap Chinese Steel. Jingye planned to invest £1.2bn in the steelmaker over the next decade. The deal still remains subject to regulatory approval, is set to end six months of instability for workers at the vast Scunthorpe steel plant in Lincolnshire, one of the two remaining UK’s blast furnace works. The deal also could save 0ver 20, 000 staff in the supply chain.

Gareth Stace director-general of trade body UK Steel said the deal had overcome a huge hurdle towards securing a sustainable future for British steelmaking, but government support is critical in helping to deliver this.

Andrew Adonis, Labour peer and former transport secretary said on twitter “ China destroys British Steel by dumping cheap steel. Now it buysthe remnants for a pittance”.

Roy Rockhuss, General secretary of steelworkers’ union  Community said “ Jingye interest demonstrates that they believe British Steel can have sustainable future.”