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Released April 08, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The Chinese owner of British Steel Limited (BSL) (Scunthorpe, England) has turned down a U.K. government offer of up to £500 million (US$646 million) to overhaul the country's second largest steel operation at Scunthorpe, putting up to 2,700 jobs at risk.
Chinese steel major Jingye Steel was made an offer by Jonathan Reynolds, U.K. Business Secretary, in a recent letter, but the company is understood to have rejected the offer. Reports suggest that it has asked for as much as £1 billion (US$1.3billion) to support previously announced plans to transition to green steelmaking by investing in electric arc furnaces with the potential closure of two blast furnaces. It employs about 3,500 people at its manufacturing operations in Scunthorpe and Teesside. Redundancy talks are underway with thousands of jobs on the line. Reynolds said: "I know this will be a deeply worrying time for staff and, while this is British Steel's decision, we will continue working tirelessly to reach an agreement with the company's owners to secure its future and protect taxpayers' money. We've been clear there's a bright future for steelmaking in the U.K.. We've committed up to £2.5 billion (US$3.2 billion) to rebuild the sector and will soon publish a plan for steel setting out how we can achieve a sustainable future for the workforce, industry and local communities."
Speaking to business trade and select committee. U.K. Industry Minister Sarah Jones confirmed that an offer had been made but was rejected. She said: "We are still in talks with them at the moment." The threat of possible closure is a concern for the government and when asked about whether the furnaces will remain operational during negotiations, she responded: "Our preference would be for them to keep going; until at the least they have secured the volume of steel imports to keep the mills going. Our preference would be that this steel is secured before they close these furnaces." British Steel was taken over by Jingye in 2020.
Last September, Tata Steel U.K. (London, England), the U.K.'s largest steelmaker, received a similar £500 million (US$646 million) rescue package from the government after protracted negotiations. The money is designed to help the company modernize its steel operations by investing in electric arc furnace (EAF) technology while moving ahead with the closure of its older smelting operations at Port Talbot in Wales, where the company employs 4,000 people. Around 2,800 jobs will be lost in the transition. As part of the deal, Tata agreed to look at future investment opportunities, which may include manufacturing wind turbines to be made in south Wales at a new plate mill. Industrial Info is tracking two Port Talbot projects worth US$2 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Chinese steel major Jingye Steel was made an offer by Jonathan Reynolds, U.K. Business Secretary, in a recent letter, but the company is understood to have rejected the offer. Reports suggest that it has asked for as much as £1 billion (US$1.3billion) to support previously announced plans to transition to green steelmaking by investing in electric arc furnaces with the potential closure of two blast furnaces. It employs about 3,500 people at its manufacturing operations in Scunthorpe and Teesside. Redundancy talks are underway with thousands of jobs on the line. Reynolds said: "I know this will be a deeply worrying time for staff and, while this is British Steel's decision, we will continue working tirelessly to reach an agreement with the company's owners to secure its future and protect taxpayers' money. We've been clear there's a bright future for steelmaking in the U.K.. We've committed up to £2.5 billion (US$3.2 billion) to rebuild the sector and will soon publish a plan for steel setting out how we can achieve a sustainable future for the workforce, industry and local communities."
Speaking to business trade and select committee. U.K. Industry Minister Sarah Jones confirmed that an offer had been made but was rejected. She said: "We are still in talks with them at the moment." The threat of possible closure is a concern for the government and when asked about whether the furnaces will remain operational during negotiations, she responded: "Our preference would be for them to keep going; until at the least they have secured the volume of steel imports to keep the mills going. Our preference would be that this steel is secured before they close these furnaces." British Steel was taken over by Jingye in 2020.
Last September, Tata Steel U.K. (London, England), the U.K.'s largest steelmaker, received a similar £500 million (US$646 million) rescue package from the government after protracted negotiations. The money is designed to help the company modernize its steel operations by investing in electric arc furnace (EAF) technology while moving ahead with the closure of its older smelting operations at Port Talbot in Wales, where the company employs 4,000 people. Around 2,800 jobs will be lost in the transition. As part of the deal, Tata agreed to look at future investment opportunities, which may include manufacturing wind turbines to be made in south Wales at a new plate mill. Industrial Info is tracking two Port Talbot projects worth US$2 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
