Latest news with #steelmaking
Sky News
a day ago
- Business
- Sky News
Chinese group Jingye hires lawyers to recover British Steel cash
The Chinese owner of British Steel has hired a leading City law firm to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of its operations in April. Sky News has learnt that Jingye Group has appointed Linklaters - which advised it on its purchase of British Steel in 2020 - to evaluate legal options for recouping part of its outlay. It was unclear on Tuesday which potential routes Jingye was exploring with Linklaters, or whether a formal legal challenge to the government was under consideration. British Steel's balance sheet bears debts worth close to £1bn, most of which is said to be owed to Jingye in the form of inter-company loans. The Financial Times reported last month that ministers were exploring the controversial use of new legislation to wipe out those debts in order to smooth a path to the sale of the business. The government and Jingye had been at loggerheads for weeks over the future of the Scunthorpe plant's blast furnaces. Since Jonathan Reynolds, the business secretary, moved to commandeer control of the UK's second-biggest steel producer, the government has sourced additional supplies of raw materials to ensure the furnaces' continued operations. Jingye had been preparing to close them - with the loss of thousands of jobs - after seeking £1bn in state aid to facilitate the site's transition to greener steelmaking. Mr Reynolds has indicated that Jingye's shares in British Steel - which has not yet been formally nationalised - are worthless, and that the government does not intend to offer to pay to acquire them. A Jingye spokesperson said: "Jingye can confirm that Linklaters has been appointed; they were the original advisers on the acquisition in 2020." A spokesman for the Department for Business and Trade said: "We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel's long-term future requires private sector investment. "We are working closely with Jingye and a range of third parties on options for the future, and we will continue work on determining the best long-term sustainable future for the site."
Bloomberg
26-05-2025
- Business
- Bloomberg
Thyssenkrupp Plans to End Conglomerate Era in Bid for Turnaround
Thyssenkrupp AG plans to transform itself into a holding company with majority stakes in standalone business units, marking the end of its era as a fully integrated industrial conglomerate. The German engineering group will spin off its materials services trading arm and its automotive-technology division, building on previously announced plans to sell or partially sell its steelmaking and naval shipbuilding operations, the company said Monday. The shift caps a drawn-out breakup of a company that traces its roots to Germany's Krupp steel and armaments empire.
Forbes
23-05-2025
- Business
- Forbes
U.S. Steel And Nippon Steel Will Partner In Trump-Backed Deal
Steelmaking titans U.S. Steel and Tokyo-based Nippon Steel will soon enter a partnership, President Donald Trump said Friday, providing scant details on the deal between both companies, which had their 2023 merger blocked under the Biden administration. Trump said the partnership between U.S. Steel and Nippon Steel 'will create at least 70,000 jobs' and generate $14 Billion for the economy, adding the majority of the investment will take place in the next 14 months. Trump, who did not characterize the deal as a merger, said U.S. Steel will remain in the U.S. under the agreement. This is a developing story. Check back for updates.
E&E News
23-05-2025
- Business
- E&E News
DOE makes metallurgical coal a ‘critical material'
The Department of Energy on Thursday night designated metallurgical coal as a critical material, a move the department says will boost the U.S. steel sector. Metallurgical coal is a type of coal used in steelmaking. It differs from thermal coal, which is used to generate electricity. 'Metallurgical coal is more than a fuel — it is a cornerstone of our industrial base,' Energy Secretary Chris Wright said in a statement. 'We are ensuring that American steel, generated by American coal, remains the backbone of our manufacturing sector.' Advertisement The move follows a White House executive order last month dubbed 'Reinvigorating America's Beautiful Clean Coal Industry.'
Yahoo
23-05-2025
- Business
- Yahoo
Prediction: 2 Stocks That Will Be Worth More Than United States Steel 5 Years From Now
United States Steel is an iconic steelmaker, but it is no longer an industry leader. Nucor and Steel Dynamics are both built on more modern steelmaking technology. Nucor and Steel Dynamics both have stronger growth models then US Steel. 10 stocks we like better than Nucor › United States Steel's (NYSE: X) place in history is secure, given how important the company was to the creation of the steel industry. But US Steel is no longer the industry-leading company it once was. Here's what's going on with this iconic steelmaker, and why peers Nucor (NYSE: NUE) and Steel Dynamics (NASDAQ: STLD) will likely be worth more than US Steel in five years. US Steel makes steel, but that's not really the important thing here. It is the way in which US Steel makes steel that's notable. Although it has diversified its production processes, the business was built on blast furnaces. This is an older steelmaking technology that uses iron ore and metallurgical coal to create primary steel. This is still an important thing to do, but blast furnaces are only profitable when they are run at high utilization rates. During steel industry downturns, when demand is weak and steel prices are low, blast furnaces tend to bleed red ink. This is why US Steel has been focused on building electric arc mini-mills, which use scrap steel and electricity to produce new steel products for sale. This technology is more flexible than blast furnace technology and can be ramped up and down with demand. Thus, electric arc mini-mills tend to have more attractive profit margins through the entire steel cycle. This technology is what underpins the businesses of both Nucor and Steel Dynamics. It is the first, and most notable, reason why investors will likely be better off buying either of these two steel mills over US Steel. But there's more than just this foundational fact to consider. The second big issue around US Steel today is that it is what's known as "in play" on Wall Street. Currently, there's a plan for the company to be bought out by a large Japanese steel mill (Nippon Steel). That deal has become a political football, so there's no telling whether it takes place. If it doesn't, US Steel has other suitors waiting in the wings. But that doesn't mean a transaction will happen. If US Steel gets bought by Nippon Steel or someone else, it will cease to exist as a stand-alone business. If it doesn't get bought out, it still has the problem of making primary steel using blast furnaces. Either way, investors are probably better off avoiding US Steel and buying either Nucor or Steel Dynamics, or both. The third big reason to like Nucor and Steel Dynamics over US Steel is that they each have very specific growth plans. Nucor is investing in new facilities and expanding its reach, often via acquisition, into higher-margin steel parts businesses. This is the same game plan that it has used for years and the one that has allowed it to become a Dividend King. Slow and steady growth is likely to continue for years. Steel Dynamics also has a growth plan, but it's a bit more aggressive. First, it is, like Nucor, investing in new facilities and expanding its reach into higher-margin steel parts businesses. But on top of that, it is also expanding its business into the aluminum sector. So far, Steel Dynamics' more growth-oriented model has worked out well for investors, noting the 10-year annualized dividend growth rate of over 10%. Assuming Steel Dynamics is as successful in aluminum as it has been in steel, this could be a very attractive growth stock. There's just an additional layer of execution risk involved in the approach compared to Nucor. The steel industry is out of favor right now thanks to economic uncertainty and geopolitical issues, notably including tariffs. That could be a buying opportunity for long-term investors. But make sure you buy the best companies if you do decide to step into the steel sector. In North America, that basically means Nucor and Steel Dynamics, both of which are likely to be worth more than US Steel in five years, if that company still exists at all. Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Prediction: 2 Stocks That Will Be Worth More Than United States Steel 5 Years From Now was originally published by The Motley Fool
