Takeover deal finally agreed for British Steel plants
A Chinese company has now confirmed its plans to invest £1.2bn to rescue British Steel.
The BBC has reported that Jingye Group said it would save 3,200 jobs in Scunthorpe and Teesside, as well as modernise both towns’ steelworks.
The deal is meant to be completed on 9 March. Jingye says there is no current deal on acquiring British Steel’s operations in France.
British Steel collapsed in May last year, with control passing to the Government’s UK Insolvency Service.
Trade union Community said the Jingye takeover confirmation is good news, but has also warned that around 400 people will still face losing their jobs.
Responding to the news that Jingye will definitely be completing the acquisition of British Steel, Roy Rickhuss, general secretary of Community, said: “It is welcome news that the completion of the deal is now in sight.
“This has been a long and, at times, very difficult process and so we are pleased to hear confirmation that Jingye will acquire British Steel next week. This is all credit to the world class workforce who have kept British Steel running through this long period of uncertainty.
“We look forward to working with Jingye as they bring forward the £1.2bn of investment, which should have a transformational effect on the business and will ensure it has a sustainable future.
“There is still plenty of work to be done in the coming weeks. Not least supporting those who did not receive job offers. We argued that everyone should be taken over into the new company and we are continuing to make the case on behalf of our members for the maximum number of employees to be transferred to the new business.
“The government took the right approach to support the company through liquidation but it still has a role to play in ensuring a level playing field for the UK industry to compete in a global market.
“We will continue to call for further action on energy costs, procurement and business rates, so that British Steel and other steel producers have the best chance of success.”
