Chinese Industrial Giant buys British Steel for £70 million

Christopher ZeniosChristopher Zenios19/11/20192min
Chinese Industrial giant Jingye has purchased British Steel potentially saving 4,000 jobs.

The deal has not been fully finalised as the government’s body said completion will be possible with “condition on a number of matters that also includes gaining regulatory approvals.”

The Insolvency service commented: “The parties are working together to conclude a sale as soon as reasonably practicable.”

Jingye was founded by 69-year-old Li Ganpo, the company is expected to pay £70million for the deal that would include ownership of steelworks at Scunthorpe, UK mills and shares of FN Steel BV, British Steel France Rail SAS and TSP Engineering.

Until the deal is fully completed Insolvency Service comments that British Steel will continue to trade as normal.

Director general of industry lobby group UK Steel, Gareth Stace commented:

I would be surprised if it did not get finalised, but it’s not a done deal.

The Chinese firm has stated plans of investing £1.2billion into the business over the next 10 years that will upgrade machinery, improving performance and efficiency.

The company has also stated it is committed to preserving jobs in the UK, an announcement Union’s have welcomed.

Logistics expert from the University of Salford Business School, Dr Jonathan Owens commented:

If successful this will secure 4,000 jobs at the Scunthorpe plant and, up to 20,000 with the wider supply chain, bringing a huge relief to thousands of families in the traditional run-up to the festive season.

 

Image source by The Independent

Christopher Zenios

Christopher Zenios

Christopher has always been a pioneer, a first adopter when it comes to technological advancements. Over the years, his expertise surrounded the real estate and digital markets and their evolution in today's society. After being the editor to various professional business news portals and blogs, he was selected to become the chief editor for HWC. Contact Christopher at +357-22029786 ext: 6110 or by email at czenios@highworthcitizen.com for editorial related questions.



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