European Association of steel can block the sale of British Steel to the Chinese
European steel lobby EUROFER preparing a complaint to the European Commission regarding the possible sale of the second largest steel plant in the UK, Chinese companies Jingye. According to EUROFER the transaction is a Prime example of how China takes its excess capacity to other countries and, in particular, to Europe.
"We must be sure that the United Kingdom government will not provide any state aid which may be considered as not complying with the state aid rules of the EU" - said in an interview with Reuters CEO EUROFER Axel Eggert.
According to the head of the Association, global overcapacity in steel production is today more than 450 million tons, which is three times the size of the European market, and China accounts for two-thirds or more of the excess.
History with EU rules against state support of the steel sector has played in British business, its negative role. These rules are referred to the UK government refusing to grant loan to British Steel in the amount of 30 million pounds, which led to the bankruptcy of the metallurgical enterprises.
Statement EUROFER surely Stoke the resolve of the British steelmakers as soon as possible to withdraw from the EU and to decide the fate of the metallurgical assets.
the British Government called a General election in December in which the decisive question for voters may be a lack of opportunities in the North of England, where British Steel conducts its principal operations.
Since then, British Steel started the forced liquidation in may, the British government is responsible for payment of wages at the plant in the amount of about 250 million pounds (320 million dollars) a year, according to sources close to the company.
we will Remind that on Sunday a Chinese company Jingye agreed buys troubled British steel, for 70 million pounds and promised to invest in the development of production still $ 1.5 billion over the next 10 years.