Latest news with #Jingye
ITV News
4 days ago
- Business
- ITV News
British Steel's Chinese owners urged to exit 'with heads held high' over Scunthorpe site
The Chinese owners of British Steel should "exit with their heads held high", a Scunthorpe MP has said as the government and Jingye remain at loggerheads over the Scunthorpe site. It has been reported a search for a new owner has come to a halt because Jingye want millions to be paid to them in cash to complete the transfer. In April, the future of this site was hanging in the balance as owners Jingye said it wasn't financially viable . The government stepped in to take control of the steelworks to prevent the blast furnaces being permanently switched off. Jungye remains the official owners of British Steel after the government stopped short of fully nationalising the company - however ministers believe is worth effectively zero. Earlier this year Jingye rejected a £500m subsidy to support the switch to green steel production. It said it was losing £700,000 a day keeping the blast furnaces operational and claimed they were no longer viable. Since then negotiations have been taking place with the owners about the transfer of the site but there has not been any resolve. Sir Nic Dakin MP said the owners should "exit with their heads held high" and transfer the business to the Government for a nominal fee. In a statement he said: "I stand firm with the Government in protecting British Steel now and in the long-term. "The Government has been clear that legislating for nationalisation remains an option, but I urge Jingye to consider their position and exit the business with their heads held high. They should transfer the business to the Government for a nominal fee." "The sooner questions about the ownership of the business are put to rest the better." A spokesperson for the Department of Business and Trade said it is working with Jungye to "determine the best long-term sustainable future for the site."
BBC News
4 days ago
- Business
- BBC News
UK says British Steel's Chinese owners demanding millions
Business Secretary Jonathan Reynolds is set for a showdown with the Chinese owners of British Steel after the government claimed they demanded hundreds of millions in taxpayer money for the steelworks at Scunthorpe.A search for a new buyer has stalled after Jingye asked for the cash to complete the transfer of the government took control of British Steel in April, amid concerns that Jingye would close down the UK's only remaining blast furnaces and put thousands of jobs at remain the official owners of British Steel after the government stopped short of fully nationalising the loss-making company, which ministers believe is worth effectively zero. Negotiations have been taking place between officials, but BBC News understands Reynolds is likely to join the talks in September.A senior source in the Department for Business and Trade would not rule out handing over some public money to the Chinese firm, but said the two sides' valuations of British Steel were still very source stressed that while "there's a public interest in protecting taxpayers' money, there's also a public interest in drawing this thing to a close".A spokesperson for the business department said they "acted quickly to ensure the continued operation of the blast furnaces and are working with Jingye to determine the best long-term sustainable future for the site".In April, MPs and peers were called back from their Easter holidays to pass legislation that allowed the government to take control of British Steel, during an extremely rare Saturday sitting of said at the time that full nationalisation was the likely next step, but ministers had been hoping that Jingye would hand over ownership of the company for a nominal was thrown into doubt during negotiations between the two sides earlier this summer, when Jingye told government officials they believed British Steel's valuation was still in the hundreds of millions.A government source wouldn't reveal the exact figure, but said Jingye's current valuation of British Steel ran into the hundreds of two parties also clashed earlier this year over the amount of cash ministers were willing to offer as part of a potential rescue rejected a £500m offer from the government in March, with sources suggesting they were holding out for something closer to £1bn. Jingye claimed the Scunthorpe plant was losing £700,000 a day when it announced plans to close the site in government had already put aside a £2.5bn steel fund and has been using cash from that pot to cover the day-today running costs of the site since ministers do not see public ownership as a long-term solution and have repeatedly said they are confident they will find another commercial partner to take on the ownership of British search for that partner has stalled since Jingye's demand for a large payout, and a senior government source said they "can't bring in new ownership while this issue remains unresolved".They said the government was "closer to the beginning than the end" of talks with Jingye, but said they were confident of getting the Chinese firm to accept "a more realistic valuation".Another source close to the negotiations cast doubt on Jingye's willingness to budge and said they believed the government would "need to step in and take ownership of the business" through another Parliamentary Parliament to force through a full nationalisation is understood to be a "last resort" in ministers' minds, because of concerns about the sort of message it could send to the wider business has been contacted for comment. Sign up for our Politics Essential newsletter to keep up with the inner workings of Westminster and beyond.
Leader Live
26-06-2025
- Business
- Leader Live
Reynolds: Port Talbot plant does not meet US rules to get steel tariff exemption
The steel industry faces uncertainty over the US-UK trade deal finalised this month, which slashed tariffs on aerospace and auto sectors, but left levies on steel standing at 25% rather than falling to zero as originally agreed. Negotiations are ongoing to secure the outstanding tariff agreements. The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for steel intended for export, as well as on the 'nature of ownership' of production facilities. Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US. 'The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,' Mr Reynolds told reporters. He said that applies to the Port Talbot plant, where semi-finished products come into the UK and then go to the mills for processing to keep the business going. 'That doesn't meet their existing implementation of that in the US.' The British Steel plant is controlled directly by the Government, but is still owned by Chinese firm Jingye. Asked if British Steel's ownership was part of US trade talks, he said it 'comes up in the context of the US (being) very supportive of what we did' to take control of the plant. 'On British Steel, we have to resolve issues of ownership separate to issues around US trade,' he said. The ownership is something that needs to be resolved 'regardless' of the US talks. The Government plans to class Britain's steel and energy sectors as 'nationally important' to UK security under new procurement rules.
Rhyl Journal
26-06-2025
- Business
- Rhyl Journal
Reynolds: Port Talbot plant does not meet US rules to get steel tariff exemption
The steel industry faces uncertainty over the US-UK trade deal finalised this month, which slashed tariffs on aerospace and auto sectors, but left levies on steel standing at 25% rather than falling to zero as originally agreed. Negotiations are ongoing to secure the outstanding tariff agreements. The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for steel intended for export, as well as on the 'nature of ownership' of production facilities. Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US. 'The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,' Mr Reynolds told reporters. He said that applies to the Port Talbot plant, where semi-finished products come into the UK and then go to the mills for processing to keep the business going. 'That doesn't meet their existing implementation of that in the US.' The British Steel plant is controlled directly by the Government, but is still owned by Chinese firm Jingye. Asked if British Steel's ownership was part of US trade talks, he said it 'comes up in the context of the US (being) very supportive of what we did' to take control of the plant. 'On British Steel, we have to resolve issues of ownership separate to issues around US trade,' he said. The ownership is something that needs to be resolved 'regardless' of the US talks. The Government plans to class Britain's steel and energy sectors as 'nationally important' to UK security under new procurement rules.
South Wales Guardian
26-06-2025
- Business
- South Wales Guardian
Reynolds: Port Talbot plant does not meet US rules to get steel tariff exemption
The steel industry faces uncertainty over the US-UK trade deal finalised this month, which slashed tariffs on aerospace and auto sectors, but left levies on steel standing at 25% rather than falling to zero as originally agreed. Negotiations are ongoing to secure the outstanding tariff agreements. The executive order signed by Mr Trump suggests the US wants assurances on the supply chains for steel intended for export, as well as on the 'nature of ownership' of production facilities. Prime Minister Sir Keir Starmer has insisted the ownership structure of the British Steel plant in Scunthorpe does not need to change to complete the deal with the US. 'The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel,' Mr Reynolds told reporters. He said that applies to the Port Talbot plant, where semi-finished products come into the UK and then go to the mills for processing to keep the business going. 'That doesn't meet their existing implementation of that in the US.' The British Steel plant is controlled directly by the Government, but is still owned by Chinese firm Jingye. Asked if British Steel's ownership was part of US trade talks, he said it 'comes up in the context of the US (being) very supportive of what we did' to take control of the plant. 'On British Steel, we have to resolve issues of ownership separate to issues around US trade,' he said. The ownership is something that needs to be resolved 'regardless' of the US talks. The Government plans to class Britain's steel and energy sectors as 'nationally important' to UK security under new procurement rules.
