- China's Jingye Steel has urged Britain to immediately stop "trampling on international investment rules" and to promptly, fully and effectively compensate the company for all investment losses incurred in the decision to nationalise British Steel.
- Jingye stated that the British side "disregarded dedicated ongoing investment and significant contributions", offering "almost zero compensation".
- The UK had spent £377 million ($507.18 million) to operate British Steel as of the end of January, with expectations that this amount would exceed £600 million by the end of June.
- Jingye has announced it will seek "full compensation through legal means to the very end" over the UK's nationalisation of British Steel.
- China has expressed strong dissatisfaction with the British government's decision, stating it "seriously infringed" upon Jingye's rights and interests.
- The UK took control of the Scunthorpe steelworks after Jingye announced plans to close the site due to financial unviability, fully nationalising the plant.
- A government spokesperson indicated that draft compensation regulations will be released in the autumn, detailing a process for determining compensation.
- Business Secretary Peter Kyle emphasized that closing the operation was not an option, stating the government will continue to cover running costs for the immediate future.
China's Jingye Steel is demanding full compensation from the UK government for losses incurred after the nationalization of British Steel. Jingye claims the UK has offered "almost zero compensation" despite spending £377 million to operate the firm, with costs expected to exceed £600 million by June and potentially £1.5 billion by 2028.135
In a statement, Jingye urged Britain to stop "trampling on international investment rules" and announced plans to pursue "full compensation through legal means to the very end". The company criticized the British government for disregarding its ongoing investments and contributions.
A UK government spokesperson indicated that draft compensation regulations will be released in the autumn, which will include a process for an independent assessor to determine compensation amounts. However, they noted that negotiations with Jingye had failed to yield an agreement that represented value to taxpayers.
The UK took control of the Scunthorpe steelworks after Jingye announced plans to close the site due to financial viability concerns. Business Secretary Peter Kyle emphasized that closing the operation was not an option, stating, "If that business disappears, we will lose the ability for primary steel production in our country."
China's commerce ministry expressed strong dissatisfaction with the UK's decision, stating it "seriously infringed" upon Jingye's rights and undermined confidence in Chinese investments in the UK. Beijing has pledged to support its firms in protecting their rights, although specific measures were not detailed.
“The UK has spent £377 million operating British Steel as of January, with costs expected to surpass £600 million by June and possibly hit £1.5 billion by 2028. The government plans to release compensation regulations in autumn, with an independent assessor determining any payout.”
BBC
