Jingye Group, the former owner of British Steel, has demanded compensation from the U.K. government, alleging significant investment losses following the nationalization of the manufacturer last week. The Chinese company stated that the British government's move tarnished its credibility, discouraged international investors, and resulted in substantial losses for Jingye Group and, potentially, British taxpayers.
In a statement released on WeChat, Jingye Group asserted that the U.K. disregarded its investments and contributions, offering "almost zero compensation." The company announced it has initiated negotiation procedures under relevant bilateral investment agreements and reserves all rights, including recourse to international arbitration. Jingye also indicated it would represent British taxpayers in seeking legal accountability from the U.K. government and British Steel's management, though specific actions were not detailed.
The British government took operational control of British Steel on July 17, citing the need to protect the U.K.'s national interest and ensure a domestic supply of steel for major construction and defense projects. The Department for Business and Trade stated that an independent evaluation would be conducted to determine any potential compensation for Jingye Group.
British Steel, with operations at its Scunthorpe plant employing approximately 2,700 people, has a history spanning over 130 years. Jingye Group acquired the company in 2020, asserting at the time that it had rescued the firm from a crisis.
China's Foreign Ministry commented on the situation, indicating that the U.K.'s handling of the matter would influence Chinese investors' perception of the British investment environment and the U.K. government's credibility. The ministry urged the U.K. to respect market principles and contractual obligations, seeking mutually acceptable solutions for compensation and other issues, while affirming China's support for its enterprises safeguarding their legitimate rights through legal means.