Chinese firm seeks compensation over British Steel nationalisation
Summary
The UK government has taken full control of British Steel, previously owned by China’s Jingye Group, after the company planned to close the steel plant due to financial losses. Jingye says it will seek full compensation through legal action, while the UK government is preparing rules to decide any compensation.Key Facts
- The UK nationalised British Steel’s Scunthorpe plant to keep it operating and protect national steel production.
- Jingye Group, a Chinese company, bought the plant in 2020 but wanted to shut it down due to losing about £700,000 daily.
- The government took over operations in April 2025 but only fully owned the company starting this week.
- Jingye is demanding full compensation from the UK government for the nationalisation.
- The UK plans to release compensation rules in the autumn with an independent assessor to determine payments.
- China’s government opposes the nationalisation and says it harms Chinese company rights and investor confidence.
- The steelworks employs around 2,700 people and is linked to other industries in North Lincolnshire.
- The government is spending roughly £1.3 million a day to keep the plant running and sees closing it as a risk to UK steel independence.
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