Administrators find buyer for British Steel - who is 4,831 miles away

The Official Receiver has sold British Steel for £1.2bn on behalf of the Government to Chinese firm Jingye.

Founded in 2016 the company employs around 5,000 people in the Scunthorpe and Teeside areas fell into administration in May 2019. A further 20,000 jobs are affected in the supply chain.

Jingye will take on the steelworks at Scunthorpe, UK steel mills and shares of FN Steel BV, British Steel France Rail SAS and TSP Engineering and the sale also includes the shares owned by BSL in Redcar Bulk Terminal.

A statement from the Official Receiver said: "Completion of the contract is conditional on a number of matters, including gaining the necessary regulatory approvals. The parties are working together to conclude a sale as soon as reasonably practicable.

"The business will continue to trade as normal during the period between exchange and completion. Support from employees, suppliers and customers since the liquidation has been a critical factor in achieving this outcome."

During the summer the Turkish army pension fund put in a bid but withdrew after negotiations.

Meanwhile Tata Steel that owns the plant in Port Talbot has announced job cuts following a failed attempt to merge with a German steel maker.

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