British Steel taken over by Chinese firm

British Steel taken over by Chinese firm

British Steel taken over by Chinese firm

On Monday, British steel was officially taken over by a Chinese firm known as the Jingye Group.

Jingye Group, a leading Chinese steelmaker, have alleged that the move will save more than 3000 jobs in Scunthorpe.

Around 450 people still face the prospect of losing their jobs.

Since completing their acquisition of the company’s UK and Netherlands assets, they have announced their plans to modernise the towns steelworks and forge a “successful future” for British Steel.

They have pledged to invest £1.2 billion in order to stabilise the business and secure a more competitive and sustainable footing. They have said that they hope to restore industry comparable margins within five years.

British Steel employed about 5,000 people at the time of its collapse, and is the second-largest steelmaker in the country.

Li Huiming, CEO of the Jingye Group, said:

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

Ron Deelen, CEO of British Steel, said:

“This is a momentous day for our business, and I’d like to thank everyone for their dedication during a challenging year. 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.”

Business Secretary, Alok Sharma, added:

“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.

I would like to pay tribute to everyone who has been involved in getting this deal over the line, in particular to British Steel’s workforce for whom I recognise the uncertainty will have been challenging.

I also want to reassure British Steel employees who may be facing redundancy that we are mobilising all available resources to give immediate on the ground support and advice to those affected.”

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