China-based steelmaker Jingye Steel has reiterated its demand for compensation after the UK government fully nationalized British Steel in July 2026, warning that it will pursue all available legal avenues to protect its investment rights.
Compensation request remains unanswered
As SteelOrbis previously reported, the UK government assumed operational control of British Steel in April 2025, while Prime Minister Keir Starmer subsequently indicated that full nationalization could follow. Jingye later requested compensation for its investment, though the company stated that it has yet to receive any substantive response from the government.
In its latest statement released on August 25, Jingye argued that transferring its UK assets into state ownership through emergency legislation without prior consultation or compensation was inconsistent with internationally accepted principles governing expropriation and could undermine investor confidence in the UK.
Jingye highlights investments and economic contribution
Jingye acquired British Steel in 2020 when the producer was facing insolvency and claims to have returned the company to profitability within one year while investing in production upgrades, restoring blast furnaces and bringing outsourced operations back in-house. According to Jingye, British Steel employed as many as 4,887 workers under its ownership, supported approximately 30,000 jobs throughout the supply chain, and paid a cumulative £1.03 billion in wages and pensions and £180 million in taxes.
The Chinese steelmaker called on the UK government to compensate it for all losses arising from the nationalization, adding that it will take the necessary legal action if the dispute remains unresolved.
