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Jingye seeks compensation after UK nationalises British Steel
Jingye says it will pursue “full compensation” via legal action after the UK took full control of the Scunthorpe plant this week, while draft UK compensation rules are due in autumn.
BBC Business reports that Jingye, the former owner of British Steel, says it will seek compensation from the UK government after the Scunthorpe steelworks was fully nationalised this week. Jingye said it plans to pursue compensation through legal means “to the very end” over the loss-making firm’s move into public hands.
The UK took control of the steelworks about a year ago after Jingye said the site was not financially viable and had planned to close it. Jingye bought the plant in 2020 and, in a consultation launched in March 2024, said it was losing £700,000 a day.
According to BBC Business, UK officials said the nationalisation was intended to safeguard a vital national capability and gave the government power to decide the plant’s future. A spokesperson also said draft compensation regulations are expected in autumn and will set out a process in which an independent assessor would determine whether compensation would be payable.
BBC Business adds that the steelworks employs about 2,700 people, and it notes the decision has heightened tensions between London and Beijing. China’s commerce ministry said the move seriously infringed Jingye’s rights and interests, while the UK said commercial negotiations had failed to produce an agreement representing value to the taxpayer.