In a statement monitored by Kallanish confirming the closing of its deal to acquire UK longs’ specialist British Steel, China’s Jingye Steel has outlined its plans for investment in its new offshoot. Amongst other developments. It intends to introduce rebar production to British Steel’s portfolio.
Jingye says that it has pledged to invest £1.2 billion ($1.55 billion) “… to place the business on a more competitive and sustainable footing.” It plans to return British Steel to industry-comparable margins within five years, the Chinese steelmaker adds.
It lists five major initiatives which it is planning for the Scunthorpe-headquartered steelmaker. The two most interesting ones are the development of an electric arc furnace in Teesside and the building of a new rebar line. The former would bring melting back to north-east England while the latter development would provide some competition for the UK’s only rebar producer, Cardiff-based Celsa.
Jingye also plans to construct a new 250-megawatt power plant to serve the Scunthorpe site. The new plant is expected to be around a third more efficient than that it replaces. The Chinese steelmaker also foresees investment in the rolling mills to produce high-quality steel products to optimise the product portfolio. It will also enhance the current rail (medium sections) mill, Jingye confirms.
“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,” says Jingye ceo Li Huiming.
