Chinese company demands compensation from the UK over British Steel nationalization
7 verified6 unconfirmed
The Chinese company that formerly owned British Steel, Jingye Group, demanded compensation from the UK government on Sunday for investment losses after the government took operational control of the steelmaker last year. Jingye accused the UK of “trampling on international investment rules” and offering “almost zero compensation.” The UK government has said an independent evaluation will determine whether any compensation is payable. The Chinese Foreign Ministry backed the demand, urging the UK to respect market principles and find a mutually acceptable solution. The Scunthorpe plant, which employs about 2,700 people, is the last in the UK capable of making virgin steel from raw materials. Jingye purchased British Steel in 2020, saying it saved the company from crisis.
What’s verified
Jingye Group demanded compensation from the UK government for losses after British Steel was nationalized.
The UK government took operational control of British Steel last year after Jingye planned to close blast furnaces at its Scunthorpe plant.
Jingye accused the UK of “trampling on international investment rules” and offering “almost zero compensation.”
The UK government stated an independent evaluation will assess whether compensation is owed to Jingye.
The Scunthorpe plant currently employs about 2,700 people.
Jingye bought British Steel in 2020.
China’s Foreign Ministry called on the UK to respect market principles and the spirit of contract.
Not yet confirmed
A single source reported that Jingye said the nationalization could cost UK taxpayers more than 1.5 billion pounds ($2.02 billion) by 2028.
A single source reported that Jingye described the nationalization as “outright robbery” and stated it has initiated negotiation procedures under bilateral investment agreements, reserving rights including international arbitration.
A single source reported that Jingye said it will also represent British taxpayers seeking to hold the UK government and British Steel’s management legally liable.
A single source reported that the UK Parliament passed legislation allowing British Steel to be brought into full public ownership, with an independent valuer appointed.
A single source reported that Jingye invested 1.2 billion pounds and that the Scunthorpe plant was losing about 700,000 pounds per day.
It remains unclear how Jingye will pursue the case in practice and what the independent valuation will conclude.
Key figures
Jingye Group (former owner of British Steel)
British Steel (nationalized steel manufacturer)
UK Department for Business and Trade
Chinese Foreign Ministry
Sources: abcnews.com, dw.com
