Chinese firm Jingye Group is demanding compensation from the UK government for investment losses following the nationalisation of British Steel, stating the move damaged credibility and international investment rules. Jingye has initiated negotiation procedures and reserves the right to international arbitration.
The UK government nationalized British Steel, previously owned by China's Jingye Group, 15 months after intervening to prevent its closure. China's Ministry of Commerce expressed strong dissatisfaction, stating the move severely undermines Chinese companies' confidence in UK investment and threatens legal action.
The UK government has nationalised British Steel to protect 2,700 jobs in Scunthorpe and maintain the UK's last primary steel production capability, amid significant daily losses and uncertainty over its future.
Jingye Steel, the Chinese owner of British Steel, has initiated a formal process under the UK-China bilateral investment treaty to seek compensation from the UK government following the nationalisation of the Scunthorpe steelworks. The company aims to recover over £1bn, potentially impacting UK-China relations.
Keir Starmer’s plan for full state ownership marks latest chapter in Scunthorpe plant’s troubled historyFull nationalisation of British Steel expected in king’s speechNils Pratley: More questions than answers on the futureFour queens – blast furnaces named after Anne, Bess (Elizabeth), Victoria and Mary – loom over the British Steel works at Scunthorpe. Within days the queens could be under public ownership, after Keir Starmer on Monday promised legislation to nationalise the plant.“Strong nations in a world like this need to make steel,” Starmer said on Monday in a speech. The prime minister was hoping decisive action would fend off challenges to his leadership. Continue reading...
Hard decisions over a possible sale and future subsidies loom now full nationalisation is on the cardsExplainer: how did we get here, and what about the future?Full nationalisation of British Steel expected in king’s speech“One of the proudest things we have done in government,” said Keir Starmer in Monday’s big speech about the decision a year ago to recall parliament in order to take control of British Steel at Scunthorpe.It was an odd boast because last year’s action was merely an emergency exercise in saving the patient, as opposed to getting British Steel on its feet and out of the hospital. Taking control meant the Chinese owner, Jingye, could not turn off the two blast furnaces but meant the government was on the hook for operational losses, which will be £615m and counting by next month according to the National Audit Office (NAO). Continue reading...
Officials reportedly drafting legislation likely to safeguard Britain’s last blast furnaces and save thousands of jobs The full nationalisation of British Steel is expected to be announced in the king’s speech this week, a year after the government took over the daily running of the loss-making business from its Chinese owner.The steelmaker, which employs 3,500 people at its plant in Scunthorpe, came under government control last April amid fears that its owner, Jingye, was planning to shut down the site. Continue reading...
Officials reportedly drafting legislation likely to safeguard Britain’s last blast furnaces and save thousands of jobs The full nationalisation of British Steel is expected to be announced in the King’s speech this week, a year after the government took over the daily running of the loss-making business from its Chinese owner.The steelmaker, which employs 3,500 people at its plant in Scunthorpe, came under government control last April amid fears that its owner Jingye was planning to shut down the site. Continue reading...
