Jingye Group pledges £1.2bn investment into British Steel
Jingye Group is to invest £1.2bn into British Steel following the Chinese steelmaker’s acquisition of the company’s UK and Netherlands assets.
Assets included in the transaction include British Steel’s steelworks at Scunthorpe and UK mills at Teesside Beam Mill and Skinningrove, plus subsidiary businesses FN Steel in the Netherlands and TSP Engineering.
Thousands of jobs at risk at British Steel enters receivership
British Steel CEO, Ron Deelen, said: “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.”
Jingye said it plans to return the company to industry comparable margins within five years with initiatives that include developing an electric arc furnace in Teesside, building a 250MW power plant at the Scunthorpe site, building a new rebar line, and improving the current rail mill. Jingye’s investment will also see improvements in rolling mills ‘to produce high-quality steel products to optimise the product portfolio’.
The completion secures approximately 3,200 jobs and follows the agreement of new terms with customers and suppliers.
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