(Secretary of State for
Business, Energy and Industrial Strategy): On
Monday 9 March, Jingye Group, a Chinese steelmaker, formally
completed its purchase of British Steel Limited from the Official
Receiver, securing more than 3,200 highly skilled jobs in the UK.
Jingye has acquired British Steel’s steelworks at Scunthorpe,
Skinningrove and on Teesside, as well as subsidiary businesses
TSP Engineering and FN Steel in the Netherlands.
On 22 May last year British Steel entered compulsory liquidation.
The court appointed Official Receiver took control of the company
and together with Special Manager, EY, was responsible for
running an independent sales process.
Upon entering liquidation an indemnity was provided by Government
which enabled British Steel to continue to trade, and staff to
continue to be employed. During this time the Government worked
closely with the Official Receiver, Special Managers and all
interested parties to support the sales process.
Securing a positive outcome for British Steel would not have been
possible without the considerable efforts and commitment of
Jingye, the Official Receiver, Special Managers, employees and
trade unions.
The British Steel Support Group, set up by the Rt Hon Member for
Tunbridge Wells and maintained by the Rt Hon Member for South
Northamptonshire also played an important role in supporting the
sales process. The group comprised of members from across the
House of Commons, local political leaders, local enterprise
partnerships, trade union representatives, British Steel
management, and representatives from Make UK and the Federation
of Small Businesses.
The sale protects thousands of highly skilled jobs and secures
steelmaking operations at British Steel’s sites in Yorkshire and
the Humber and the North East. Jingye has outlined ambitious
plans for the business, pledging investment of £1.2 billion to
modernise sites and improve energy efficiency and environmental
performance.
While more than 3,200 jobs have been secured, around 450 staff
have, sadly, not be retained. The number of employees was
negotiated with the trade unions alongside the new terms and
conditions. The Government is offering its full support for those
affected, mobilising the Rapid Response Service and National
Careers Service to give immediate on the ground support and
advice. This Service will help those affected to transition into
other employment or take on new training opportunities.
More broadly, the Government is committed to working with
businesses and local government to grow and modernise the economy
of the Humber area. Over the long term we will need industry in
the Humber area to make a major contribution to national net zero
and energy supply goals. We will shortly be publishing our Local
Industrial Strategy for the Humber which will reflect these
ambitions.
We look forward to working with the new management team at
British Steel to ensure that the company can realise its full
potential. This sale is a vote of confidence in the UK steel
industry. Britain and the world will continue to need
high-quality steel, and British steel is amongst the best in the
world.
