The Official Receiver confirmed that a sales contract has been entered into with Jingye Steel (UK) Ltd and Jingye Holding Ltd to acquire the business and assets of British Steel Limited.
The sale includes the British Steel steelworks at Scunthorpe, UK Mills and shares of FN Steel B.V, British Steel France Rail SAS and TSP Engineering. It also includes shares owned by BSL in Redcar Bulk Terminal Limited.
Completion of the contract is conditional on a number of matters, including gaining the necessary regulatory approvals. The Official Receiver said the parties are working together to conclude a sale as soon as reasonably practicable. The business will continue to trade as normal during the period between exchange and completion. The statement added that support from employees, suppliers and customers since the liquidation has been a critical factor in achieving this outcome.
The High Court ordered that British Steel enter compulsory liquidation on 22nd May 2019, after the UK Government declined to extend further financial support to the company, then owned by Greybull Capital.
The statement did not confirm the value of the planned transaction or release any other details.
The Jingye Group is based in China’s Hebei Province, with Group headquarters in Beijing. According to its website, Group turnover in 2019 was around CNY 90.1 billion (around EUR 11.5 billion), which ranked Jingye 217th in the top 500 Chinese enterprises. Jingye employs around 23,500 people and as well as steelmaking is involved in 3D printing, powder metallurgy, tourism, hotels and real estate.
Having joined the magazine in 2012, Claire developed her knowledge of the industry through the numerous company visits, exhibitions and conferences she attended both in the UK and abroad.
Claire prides herself on keeping readers well informed and up to date with the latest industry news.