Chinese firm poised to buy British Steel
British Steel's steelmaking plant in Scunthorpe (Image: British Steel)
The Chinese industrial giant Jingye Group is set to take over British Steel, which fell into liquidation in May, in a £70m deal.
The Official Receiver, which is managing the insolvency of British Steel, is expected to announce the move later today.
Staff have been told that contracts between the two firms have been exchanged, according to the Financial Times.
British Steel employs around 4,000 people at plants in Scunthorpe and Teesside, while the company is estimated to support another 20,000 jobs in the supply chain.
Jingye, which operates in sectors including chemicals, hospitality and real estate, is thought to be keen to acquire British Steel for its ability to make high-quality rail and heavy steel sections which Jingye does not currently produce.
British Steel was previously a subsidiary of Indian giant Tata Steel before it was sold to Greybull Capital for £1. The government decided against providing the company with an additional financial bailout this year and it went into liquidation. Earlier this year it looked as if Turkey’s military pension fund would acquire the company but talks stalled.