Chinese Jingye company completed the acquisition of the assets of British Steel and is ready to invest $ 1.5 billion

China metallurgical company, Jingye Group has announced the successful completion of the transaction for acquisitions the second largest steel company in the UK British Steel.

We're delighted to announce that Jingye Group has completed the purchase of our business, beginning a new chapter in British steelmaking. Read the press release here: https://t.co/D5UYIMq9Cg pic.twitter.com/T0x2mPOOCE

— British Steel (@BritishSteelUK) March 9, 2020

Jingye has pledged to invest 1.2 billion pounds, to make the business more competitive and sustainable. Chinese owner plans to return the company to profitability and sustainable margins within five years.

Initiative Chinese include:

the

• the
• Installation of new electric arc furnace in Teesside the
• the Construction of a new plant with a capacity of 250 MW for maintenance site in Scunthorpe. the
• Investments in rolling mills for the production of high quality steel for the assortment optimization products. the
• the Construction of a new rolling mill for the production of rebar the
• Improving the current railway network

Completion ensures the future of approximately 3 200 jobs and follows the agreement of new terms with customers and suppliers.

Director General Jingye Group Li Huimin said,

"It was a difficult journey ever since we first announced its intentions in November, but the longer time I spend in Scunthorpe, the more I start to believe in the successful future of these steel mills and employees that have made them famous around the world. Together we can create a new partnership, which will mark the beginning of an illustrious new Chapter in the history of the British steel industry".

As mentioned earlier, the assets included in the deal include metallurgical plant British Steel in Scunthorpe and British factories on Teesside Beam Mill and Skinningrove, as well as subsidiaries of FN Steel in the Netherlands and TSP Engineering. This does not include the French operation British Steel in Change acquisition which is still subject to further negotiations with the relevant authorities in France and is expected to be concluded separately.