“It has not been an easy journey since we first announced our intentions in November, but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world. Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking,” said Jingye Group chief executive Li Huiming. 

As part of the acquisition, Jingye plans to invest £1.2 billion in British Steel’s facilities. The investment includes the development of an electric arc furnace in Teesside, construction of a 250-MW power plant to serve the Scunthorpe site, investments in its rolling mills, construction of a new rebar line and enhancing the current rail mill.

Assets in the transaction include British Steel’s steel works at Scunthorpe and U.K. mills at Teesside Beam Mill and Skinningrove, as well as subsidiary businesses FN Steel in the Netherlands and TSP Engineering. 

U.K. Business Secretary Alok Sharma said, “The sale of British Steel represents an important vote of confidence in the U.K.’s steel industry. It also marks the start of a new era for those regions that have built their livelihoods around industrial steel production.”