Updated
Updated · DW (English) · Jul 19
Jingye Seeks £1.5 Billion From UK Over British Steel Takeover
Updated
Updated · DW (English) · Jul 19

Jingye Seeks £1.5 Billion From UK Over British Steel Takeover

3 articles · Updated · DW (English) · Jul 19

Summary

  • Jingye said Saturday it has started a procedure under bilateral investment agreements to pursue full compensation from Britain, calling the takeover of British Steel "outright robbery" and threatening legal action.
  • The Chinese group said ministers ignored its investment and offered almost zero compensation, adding the nationalization could cost UK taxpayers more than £1.5 billion by 2028.
  • Britain first took operational control after Jingye planned to close Scunthorpe's blast furnaces, a move that risked ending the UK's ability to make primary steel from raw materials.
  • Parliament has now cleared full public ownership of British Steel, with an independent valuer set to decide whether any compensation is payable to Jingye.
  • Scunthorpe employs about 2,700 people and is central to supplies for construction, rail and defense, underscoring why ministers framed the intervention as a national security move.

Insights

After seizing British Steel, can the UK avoid a billion-pound legal showdown with its former Chinese owner?
Can government ownership finally forge a profitable future for British Steel after private companies repeatedly failed?