This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-50369413
The article has changed 16 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
British Steel agrees £70m rescue with Chinese firm | British Steel agrees £70m rescue with Chinese firm |
(32 minutes later) | |
British Steel is set to announce a rescue deal with China's Jingye Group, which could safeguard up to 4,000 jobs in the UK. | British Steel is set to announce a rescue deal with China's Jingye Group, which could safeguard up to 4,000 jobs in the UK. |
Jingye Group has agreed in principle to buy British Steel for £70m. | Jingye Group has agreed in principle to buy British Steel for £70m. |
It is understood that the government will help in the form of loan guarantees and other financial support. | It is understood that the government will help in the form of loan guarantees and other financial support. |
British Steel has been kept running by the government since May when the company went into liquidation. | British Steel has been kept running by the government since May when the company went into liquidation. |
As well as employing 4,000 people at its Scunthorpe and Teeside sites, British Steel supports an additional 20,000 jobs in the supply chain. | As well as employing 4,000 people at its Scunthorpe and Teeside sites, British Steel supports an additional 20,000 jobs in the supply chain. |
It is believed that while Jingye Group has promised to increase production, it has also warned costs may need to be cut. | It is believed that while Jingye Group has promised to increase production, it has also warned costs may need to be cut. |
The Chinese group is aiming to increase production at Scunthorpe from 2.5 million tonnes each year to more than 3 million, according to the Financial Times. | |
British Steel had been in rescue talks with Ataer, which is a subsidiary of Turkey's state military retirement scheme Oyak. | |
Ataer had signed a signed a preliminary agreement to buy the company in August. | |
However, hopes that the deal could be completed faded last month when the Official Receiver to British Steel said the parties had failed to agree terms. | |
The UK industry has been struggling for a number of years amid claims that China has been flooding the market with cheap steel. | The UK industry has been struggling for a number of years amid claims that China has been flooding the market with cheap steel. |
It prompted US President Donald Trump to impose a 25% trade tariff on steel imports from China and the EU among others. | It prompted US President Donald Trump to impose a 25% trade tariff on steel imports from China and the EU among others. |
Jingye has 23,500 employees and as well as its main steel and iron making businesses, it is also involved in hotels, tourism and property. |