Chinese firm seeks compensation over British Steel nationalisation

The erstwhile proprietor of British Steel has said it volition prosecute the British authorities for compensation aft the loss-making steadfast was nationalised.

The UK took power of the steelworks successful bluish England a twelvemonth agone aft China's Jingye Group said it planned to adjacent the tract due to the fact that it was not financially viable, and afloat nationalised the works connected Thursday.

In a connection connected Sunday, Jingye said it volition question "full compensation done ineligible means to the precise end" implicit the UK's move.

A authorities spokesperson said draught compensation regulations owed to beryllium released successful the autumn volition acceptable retired a compensation process done which an autarkic assessor "would find what, if any, is payable".

Jingye bought the Scunthorpe alloy works successful 2020, but successful March past twelvemonth the steadfast launched a consultation connected its closure saying the works was losing £700,000 a day.

The authorities took power of British Steel operations successful April 2025, but until this week it remained nether Jingye's ownership which constricted the government's quality to signifier the firm's future.

On Thursday the UK authorities said it was taking the steadfast into nationalist hands successful bid to safeguard a "vital nationalist capability", giving the authorities the powerfulness to determine the plant's future.

The determination to nationalise British Steel has threatened to strain the narration betwixt London and Beijing conscionable arsenic Andy Burnham prepares to participate Downing Street arsenic premier curate connected Monday.

China hit retired astatine the nationalisation of British Steel connected Friday, saying it "firmly opposes and is powerfully dissatisfied with the British government's decision".

China's commerce ministry said the determination "seriously infringed" upon Jingye's rights and interests, and "severely undermined the assurance of Chinese companies investing successful the UK".

The connection added that Beijing would enactment Chinese firms to support their rights, but did not item what that mightiness involve.

A UK authorities spokesperson said connected Friday that commercialized negotiations with the Chinese steelmaker had failed to scope an statement "that represented worth to the taxpayer".

"We highly worth our narration with China and stay unfastened to Chinese investment, and we volition proceed to enactment unneurotic to present a palmy trading narration that provides the champion opportunities for British businesses," they added.

The steelworks employs astir 2,700 radical and supports different industries successful North Lincolnshire, but has faced important uncertainty implicit the past fewer years.

In March, the National Audit Office released a study that recovered it was costing the authorities astir £1.3m a day to support the works running.

But Business Secretary Peter Kyle has said letting the cognition adjacent was not an option, and the authorities volition proceed to screen the moving costs "for the contiguous future".

"If that concern disappears, we volition suffer the quality for superior alloy accumulation successful our country, we volition go wholly babelike connected planetary supply," helium said connected Thursday.

British Steel was past nether authorities ownership successful 1988 erstwhile it was privatised by Prime Minister Margaret Thatcher's government.