British Steel has announced that the takeover deal by China’s Jingye Group has been completed, including the company’s assets in the UK and the Netherlands, saving 3,200 jobs in Scunthorpe, Skinningrove and on Teesside in the UK.
As part of the deal, Jingye Group has pledged to invest £1.2 billion to place the business on a more competitive and sustainable footing. Jingye plans to return the company to industry comparable margins within five years.
Investment plans include the development of an electric arc furnace in Teesside, the construction of a new 250 MW power plant to serve the Scunthorpe site, investment in the rolling mills to produce high-quality steel products to optimize the product portfolio, build a new rebar line and enhance the current rail mill.
The takeover does not include British Steel’s French operations at Hayange, the acquisition of which is still subject to further negotiations with the relevant authorities in France and is hoped to be concluded separately.