The completion secures the future of approximately 3,200 jobs and follows the agreement of new terms with customers and suppliers.
March 9, 2020
Chinese steelmaker Jingye Group has completed the purchase of British Steel’s UK and Netherlands assets from the Official Receiver.
Jingye has pledged to invest £1.2 billion to place the business on a more competitive and sustainable footing. Jingye plans to return the company to industry comparable margins within five years. The initiative includes development of an Electric Arc Furnace in Teesside, construction of a new 250MW power plant to serve the Scunthorpe site. The new plant is expected to be around a third more efficient than that it replaces, investment in the rolling mills to produce high-quality steel products to optimize the product portfolio, build a new rebar line and enhance the current rail mill.
Li Huiming, CEO, Jingye Group said, “It has not been an easy journey since we first announced our intentions in November but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world. Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking.”
Ron Deelen, CEO, British Steel said, “This is a momentous day for our business, and I’d like to thank everyone for their dedication during a challenging year. I’m confident we’ll seize the incredible opportunity Jingye have given us to build on 150 years of heritage, and further cement British Steel’s reputation as a manufacturer of world class steel.”
As previously indicated, assets included in the transaction include British Steel’s steelworks at Scunthorpe and UK mills at Teesside Beam Mill and Skinningrove, as well as subsidiary businesses FN Steel in the Netherlands and TSP Engineering. It does not include British Steel’s French operations at Hayange, the acquisition of which is still subject to further negotiations with the relevant authorities in France and is hoped to be concluded separately.
