UK signals it may block payout to British Steel owner
Summary
The UK government has taken control of British Steel to keep the steelworks running and is considering limiting or refusing compensation to its Chinese owner, Jingye Group. Jingye is seeking payment under a bilateral investment treaty, but the government says any payout will be decided independently and only paid if justified.Key Facts
- British Steel was nationalised by the UK government on 12 April 2025 to stop the closure of its blast furnaces.
- Jingye Group, a Chinese company, owns British Steel and bought it in 2020.
- Jingye claims the plant loses £700,000 daily and has started discussions to claim compensation under a bilateral investment treaty (BIT).
- A BIT is an agreement between two countries to protect investments from those countries.
- The UK’s Department for Business and Trade (DBT) says compensation decisions will be made by an independent valuer.
- The Steel Industry Bill, allowing nationalisation, is moving through Parliament and has passed the House of Commons.
- The government says revitalising steel production is a priority and will explore ways to modernise the industry.
- British Steel is currently costing the government about £1.3 million a day to run, but it has won some new contracts recently.
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