British Steel negotiations at standstill as UK rejects Jingye’s multi-million demands
According to a news report by the BBC, the UK government’s talks with China-based Jingye Group, the owner of the UK-based steelmaker British Steel, have reached a critical impasse over the Scunthorpe steelworks.
Ministers accuse Jingye of demanding “hundreds of millions” in taxpayer money to transfer ownership – a sum they say is far above the company’s real value. The deadlock has stalled efforts to secure a new buyer and raised fresh concerns about thousands of jobs and the country’s last blast furnaces.
According to a news report by the BBC, the UK government’s talks with China-based Jingye Group, the owner of the UK-based steelmaker British Steel, have reached a critical impasse over the Scunthorpe steelworks. Ministers accuse Jingye of demanding “hundreds of millions” in taxpayer money to transfer ownership – a sum they say is far above the company’s real value. The deadlock has stalled efforts to secure a new buyer and raised fresh concerns about thousands of jobs and the country’s last blast furnaces.
In April, the UK government took control of steelmaker British Steel to prevent the closure of two blast furnaces at its Scunthorpe plant, as SteelOrbis previously reported. Full nationalization was initially considered, but ministers hoped Jingye Group would transfer ownership for a nominal fee. British Steel is officially still owned by Jingye Group, as the government stopped short of a complete takeover. Full nationalization remains a last resort, with ministers wary of discouraging foreign investment.
At the end of March, British Steel started the consultation process for the closure of two blast furnaces at the Scunthorpe plant, following Jingye’s rejection of a £500 million support package offered by the UK government.
