British Steel's Chinese owner demands compensation after UK takeover

The Chinese owner of British Steel demanded compensation from the UK government on Thursday for losses from investments made before London took over operating the plant.

Jingye, which bought British Steel in 2020, lost control of the company in April last year when Prime Minister Keir Starmer's government intervened at the struggling firm, which was facing imminent closure.

Starmer announced legislation last month to fully nationalise British Steel, the country's last factory that can make steel from scratch.

"Jingye has recently initiated consultation procedures... with the British government," the firm said in statement.

The company is "demanding that the British government respect the objective facts and provide timely, full and effective compensation for Jingye's investment losses in British Steel".

Jingye "will use all legal means to continuously and firmly protect all its legitimate rights and interests," the statement said.

The UK government's takeover last year followed Jingye's declaration that the northern England plant was no longer financially viable.

Nationalisation would bring British Steel back into government ownership for the first time since 1988.

London has seen the possible closure of the plant as a threat to Britain's long-term economic security, given the decline of the country's once-robust steel industry.

AFP

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