Chinese firm seeks compensation over British Steel nationalisation
The former owner of British Steel said he would seek compensation from the British government after the loss-making company was nationalized.
The UK took control of the Scunthorpe steelworks a year ago after China’s Jingye Group said it planned to close the plant because it was not financially viable and fully nationalized it on Thursday.
In a statement on Sunday, Jingye said he would seek “full compensation through legal means” for the UK’s move.
A government spokesman said draft compensation regulations to be published in the autumn would set up a compensation process where an independent assessor would “determine how much, if any, will be paid”.
Jingye bought the Lincolnshire steel mill in 2020, but in March last year the firm launched a consultation on its closure, saying it was losing £700,000 a day.
The government took control of British Steel’s operations in April 2025, but it remained under Jingye’s ownership until this week, limiting the government’s ability to shape the firm’s future.
The UK government on Thursday said it would put the firm into public hands to protect a “vital national capability” by giving the government the power to decide the future of the facility.
As Andy Burnham prepares to enter Downing Street as prime minister on Monday, his decision to nationalize British Steel threatens to strain the relationship between London and Beijing.
