Chinese firm seeks compensation over British Steel nationalisation
The former owner of British Steel has said it will pursue the British government for compensation after the loss-making firm was nationalised. The UK took
The former owner of British Steel has said it will pursue the British government for compensation after the loss-making firm was nationalised. The UK took control of the steelworks in northern England a year ago after China's Jingye Group said it planned to close the site because it was not financially viable, and fully nationalised the plant on Thursday.
In a statement on Sunday, Jingye said it will seek "full compensation through legal means to the very end" over the UK's move. A government spokesperson said draft compensation regulations due to be released in the autumn will set out a compensation process through which an independent assessor "would determine what, if any, is payable". Jingye bought the Scunthorpe steel plant in 2020, but in March last year the firm launched a consultation on its closure saying the plant was losing £700,000 a day.
The government took control of British Steel operations in April 2025, but until this week it remained under Jingye's ownership which limited the government's ability to shape the firm's future. On Thursday the UK government said it was taking the firm into public hands in order to safeguard a "vital national capability", giving the government the power to decide the plant's future.
The decision to nationalise British Steel has threatened to strain the relationship between London and Beijing just as Andy Burnham prepares to enter Downing Street as prime minister on Monday.
The BriefWire