Sunday, July 12, 2020

“Momentous day” as Jingye completes acquisition of Scunthorpe’s British Steel

Some 3,200 jobs have been safeguarded after Chinese steel giant, Jingye Group, completed its acquisition of Scunthorpe-headquartered British Steel in a move described by CEO Ron Deelan as a “momentous day.”

The completion follows the agreement of new terms with customers and suppliers, saving thousands of jobs. However, around 400 employees have not received offers of employment and will be let go.

The sale includes the steelworks at Scunthorpe, the UK mills in Teeside and Skinningrove, shares of FN Steel BV, and the TSP Engineering business based in Cumbria.

Ongoing discussions aim to resolve the regulatory approvals needed to sell British Steel’s French subsidiary based in Hayange to Jingye.

With the deal completed, Jingye will invest £1.2 billion to make the business more competitive and boost energy efficiency and environmental footprint.

This will include the construction of a 250 MW power plant to serve the Scunthorpe site. The new plant is expected to be around a third more efficient.

“It has not been an easy journey since we first announced our intentions in November but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world,” said Jingye Group CEO, Li Huiming.

“Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking.”

Business Secretary, Alok Sharma, said: “The sale of British Steel represents an important vote of confidence in the UK’s steel industry. It also marks the start of a new era for those regions that have built their livelihoods around industrial steel production.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 lockdown having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £27.55 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.

Advertisment








Latest posts

Step inside this serene family home

Boasting open farmland views of Fenland Countryside, this idyllic detached period farmhouse is placed on a 0.65-acre plot down a quiet lane, close to...

University Centre completes in Grantham

Work to create a University Centre to deliver higher education and skills training in Grantham is now complete. Degrees, high-level apprenticeships, diplomas and short courses...

Greater Lincolnshire receives £25.8m in ‘new deal’

The Greater Lincolnshire LEP has received a £25.8 million cash boost from the Government to fund ‘shovel-ready’ projects to help the local economy and...

Scunthorpe’s Church Square to be transformed into urban park

Church Square in Scunthorpe’s High Street will undergo a dramatic redevelopment as North Lincolnshire Council is to create an urban park at the centre...

Lincoln Christmas Market cancelled as coronavirus crisis continues

Lincoln Christmas Market 2020 has been cancelled due to the ongoing threat of the UK’s coronavirus crisis. City of Lincoln Council has made the difficult...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close