Chinese steel maker, Jingye Group, has completed the £50 million purchase of British Steel, saving around 3,000 jobs and rescuing the ailing company from the hands of the official receiver.
The company was placed into compulsory liquidation last May.
Jingye Group has said it intends to invest around £1.2 billion and plans to retain around 3,000 staff, while 400 others have been told they face redundancy.
Separately. Jingye Group is negotiating for British Steel’s operations in France at Hayange. The French government regards the plant as being of strategic importance as it supplies the French railway company, SNCF.
In the UK, Jingye Group plans to make a significant investment in an electric arc furnace which uses recycled steel, as well as constructing a more efficient power plant and developing a new line for steel rebar which is used in the construction industry.
British Steel’s future was thrown into doubt when the company’s owners, Greybull Capital decided to pull out after failing to secure further investment. Greybull Capital bought the company for a token £1.00.