Jingye Group, the former owner of British Steel, has demanded compensation from the UK government following the steelmaker’s nationalisation. The Chinese company said it had started negotiation procedures under relevant bilateral investment agreements and retained the option of pursuing international arbitration.
In a statement posted on WeChat, Jingye said the nationalisation had caused it substantial operating losses and alleged that the UK was offering almost no compensation. It also said it intended to pursue legal liability involving UK government officials and British Steel management on behalf of British taxpayers, though it did not explain how that process would work.
The UK government said last week that an independent evaluation would be conducted to establish whether Jingye should receive compensation. The Department for Business and Trade said its July 17 intervention was intended to preserve thousands of jobs and secure a domestic supply of steel for major construction projects and the defence industry.
The government had taken operational control of British Steel last year after Jingye said it was considering closing blast furnaces at the Scunthorpe site in northern England. The plant, which employs about 2,700 people, is the UK's last facility producing virgin steel from raw materials. Jingye acquired British Steel in 2020 and says it rescued the company from a crisis.
China's Foreign Ministry said the outcome would affect Chinese investors' view of the UK investment environment and the British government's credibility. It urged the two sides to reach a mutually acceptable resolution on compensation and said China supports companies using legal means to protect their rights.
