Chinese steelmaker Jingeye Group has announced plans to invest £1.2 billion in British Steel, saving the company but cutting around 400 local jobs.
Around 3,200 jobs will be saved thanks to the move, however hundreds of British Steel employees were reportedly made redundant by email or telephone calls on Monday.
It is understood that Jingye Group has offered £50 million to buy the company, which entered an insolvency process in May 2019.
The sale will be completed next Monday, March 9 and the Jingye Group will acquire the firm’s sites in Teeside and Scunthorpe.
Around a further 100 jobs will reportedly transfer to Barrett Steel following the sale of four British Steel distribution centres.
Li Huiming, Chief Executive at Jingye said the deal marked a “new chapter in British steelmaking”.
He said: “I want to thank everyone who has been involved in making this deal happen, including British Steel employees, the Unions, and the British government. We will not misplace the trust that they have placed in us.”
Roy Rickhuss, General Secretary of the union Community, welcomed the news “that the completion of the deal is now in sight”.
He said: “There is still plenty of work to be done in the coming weeks. Not least supporting those who did not receive job offers yesterday (March 2).
“We argued that everyone should be taken over into the new company and we are continuing to make the case on behalf of our members for the maximum number of employees to be transferred to the new business.
“We also hope that the Hayange plant can be part of the future of British Steel as it is an important element of the downstream supply chain from Scunthorpe.”
The deal had previously been in doubt when the French government said it might veto the deal because it considered British Steel’s plant in Hayange a strategic national assets. The deal is now back on.
The Lincolnite welcomes your views. All comments are reactively-moderated and must obey the house rules. Please stay on topic and be respectful of other readers.
Exciting news for MyLocal app users and The Lincolnite readers! Our latest update is now available to download from your app store and comes packed with the best local news experience you can enjoy.
Revamped News Feed: Enjoy faster loading times and smoother scrolling that make catching up on local news a breeze.
New Play Video Feed: Dive into a dynamic video feed that brings local stories to life in a whole new way.
Enhanced In-App Browser: Access external links quickly and efficiently, right from the app, without any distractions.
Update your MyLocal app from your app store (version 2.73) now and start enjoying these great new features today!
P.S.: Start your MyLocal membership today to support MyLocal and The Lincolnite deliver you a better local news experience and honest journalism from across Lincolnshire.
P.P.S.: We have some huge things in the pipeline, stay tuned!
Exciting news for MyLocal app users and The Lincolnite readers! Our latest update is now available to download from your app store and comes packed with the best local news experience you can enjoy.
Revamped News Feed: Enjoy faster loading times and smoother scrolling that make catching up on local news a breeze.
New Play Video Feed: Dive into a dynamic video feed that brings local stories to life in a whole new way.
Enhanced In-App Browser: Access external links quickly and efficiently, right from the app, without any distractions.
Update your MyLocal app from your app store (version 2.73) now and start enjoying these great new features today!
P.S.: Start your MyLocal membership today to support MyLocal and The Lincolnite deliver you a better local news experience and honest journalism from across Lincolnshire.
P.P.S.: We have some huge things in the pipeline, stay tuned!