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| Version 4 | Version 5 |
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| British Steel to be rescued by Chinese firm in £70m deal | |
| (about 3 hours 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 Teesside sites, British Steel supports an additional 20,000 jobs in the supply chain. | As well as employing 4,000 people at its Scunthorpe and Teesside sites, British Steel supports an additional 20,000 jobs in the supply chain. |
| 'Significant investment' | |
| Gareth Stace, director general of industry lobby group UK Steel, told BBC Radio 4's Today that the business being bought was a "significant asset to our country" as it makes up a third of UK steel production, mostly from Scunthorpe. | |
| It also complements Jingye, he said. "We know that a purchase by Jingye of British Steel would certainly complement what they do there in China. | |
| "They both make wire rod, but actually British Steel makes rail, high-quality rail and heavy sections, ie girders which Jingye doesn't make. [So it] not only increases the amount of different products that Jingye could make but also, much more importantly, secures a foothold in the UK." | |
| He said that there was a need for "very significant investment" in the Scunthorpe works and that was why the expected announcement from Jingye was "really welcome". | |
| "Jingye are looking to make significant investment, are in for the longer term and therefore it isn't about keeping this site going for a year or two or a couple of years. To me, what I understand about the company, it's about looking to the future, so we're not going to be back in here in three years, five years, in 10 years' time." | |
| He said that the steel industry in the UK can compete globally. | |
| Order book | |
| 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 reportedly aiming to increase production at Scunthorpe from 2.5 million tonnes per year to more than three million. | The Chinese group is reportedly aiming to increase production at Scunthorpe from 2.5 million tonnes per year to more than three million. |
| Since May, the company has been run at a loss by the Official Receiver - effectively a privately hired government agency. | Since May, the company has been run at a loss by the Official Receiver - effectively a privately hired government agency. |
| British Steel's previous owners, Greybull Capital, walked away saying Brexit concerns had decimated forward order books. | British Steel's previous owners, Greybull Capital, walked away saying Brexit concerns had decimated forward order books. |
| Turkish deal | Turkish deal |
| British Steel had been in rescue talks with Ataer, which is a subsidiary of Turkey's state military retirement scheme Oyak. | 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 preliminary agreement to buy the company in August. | Ataer had 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 said the parties had failed to agree terms. | However, hopes that the deal could be completed faded last month when the Official Receiver 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. | 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. |
| The majority of British Steel's workers are employed at its Scunthorpe plant. | The majority of British Steel's workers are employed at its Scunthorpe plant. |
| Jingye's chairman Li Ganpo recently visited British Steel's sites and met with Scunthorpe MP Nic Dakin and Andrew Percy, representative for the Brigg and Goole constituency. | Jingye's chairman Li Ganpo recently visited British Steel's sites and met with Scunthorpe MP Nic Dakin and Andrew Percy, representative for the Brigg and Goole constituency. |
| Mr Percy told the Grimsby Telegraph he had been given assurances over the company's future. | Mr Percy told the Grimsby Telegraph he had been given assurances over the company's future. |
| "They have assured us that if they do progress with this acquisition, they have every intention of investing to expand production to serve the UK and European market," he said. | "They have assured us that if they do progress with this acquisition, they have every intention of investing to expand production to serve the UK and European market," he said. |
| Who is Jingye Group? | Who is Jingye Group? |
| China's Jingye Group specializes in iron and steel but also engages in tourism, hotels and real estate. | China's Jingye Group specializes in iron and steel but also engages in tourism, hotels and real estate. |
| It has 23,500 employees and total registered assets of 39bn yuan (£4.4bn). According to its website, Jingye Group ranked 217th among the top 500 enterprises in China in 2019. | It has 23,500 employees and total registered assets of 39bn yuan (£4.4bn). According to its website, Jingye Group ranked 217th among the top 500 enterprises in China in 2019. |
| The firm sells its products nationwide and exports them to more than 80 countries and regions. | The firm sells its products nationwide and exports them to more than 80 countries and regions. |
| Jingye's products have been used in major projects such as Beijing Daxing International Airport and the underground system in Shijiazhuang. | Jingye's products have been used in major projects such as Beijing Daxing International Airport and the underground system in Shijiazhuang. |