Jingye Group demands compensation over British Steel nationalisation
A Chinese conglomerate that formerly owned British Steel is seeking compensation from the UK government for investment losses following the nationalization of the steelmaker last week.
The UK government took operational control last year after Jingye Group considered shutting down the blast furnaces of its Scunthorpe plant.
In a WeChat statement, Jingye claimed that the nationalization “undermines the credibility of the British government, scares away international investors and causes huge losses to the company’s operations and British taxpayers’ funds.” It also demanded that the UK government stop “trampling on international investment rules”.
The company has initiated negotiation procedures within the scope of bilateral investment agreements, with all rights reserved. Jingye said it would also represent the UK government and taxpayers seeking to hold Steel management legally responsible, but details were not disclosed.
“The UK ignored Jingye’s sustained investment and significant contribution and was only willing to give almost zero compensation,” he said.
The UK government said last week that an independent assessment would be carried out to determine whether any compensation should be paid to Jingye Group.
The Department for Business and Trade announced the move on July 17, saying it would save thousands of jobs and protect the UK’s national interests by ensuring supplies of domestically produced steel for major construction projects and the defense industry.
British Steel and its ancestors have been producing steel in Scunthorpe for over 130 years, benefiting from the UK’s development of advanced steelmaking technology during the Industrial Revolution. Approximately 2,700 people currently work at the factory.
Jingye bought British Steel in 2020 and said it saved the steel company from the crisis.
China’s Ministry of Foreign Affairs said on Saturday that the way Britain handles the issue will directly affect how Chinese investors view the British investment environment and the credibility of the British government.
“China urges the UK to earnestly respect market principles and contractual spirit, and find mutually acceptable solutions on compensation and other issues,” the statement said.
He added that China supports businesses in protecting their legitimate rights through legal means.
