British Steel owner requests £100m coronavirus loan

British Steel owner requests £100m coronavirus loan

British Steel owner requests £100m coronavirus loan

The new owner of British Steel Jingye has requested a £100m coronavirus support loan from the UK Government, having taken over the firm in March.

Other steelmakers have also asked for government help, as the industry has been hit hard by the effects of the pandemic.

The steel industry is struggling with the fall in construction brought on by the coronavirus pandemic.

A total of nearly £1billion in government aid has been requested by the sector.

Jingye, a Chinese company, took control of the Scunthorpe site in March, saving it from liquidation following its collapse last year.

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.”

The move saved around 3200 jobs, and it is thought that these will be saved from redundancy if the loan is granted.

But, Jingye’s status as a Chinese company which has only recently entered the British market may make it more difficult to secure a government loan.

A British Steel spokesman said:

“Like many businesses we’ve been in contact with the UK government throughout the pandemic.

“We’ve robust measures in place to protect our people and our business and are grateful for the ongoing support of our employees, owners, customers, suppliers and government.”

The Government are currently said to be considering the request.

Hundreds of members of Britsh Steel staff have now been furloughed, with the remainder working under strict social distancing measures.

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