China's Jingye Group has stated its intention to pursue legal action and seek full compensation from the British government after the UK nationalized British Steel, the company formerly owned by Jingye.
The UK government took full control of the Scunthorpe steelworks on Thursday, a year after Jingye Group had announced plans to close the site due to financial non-viability. Jingye acquired the Lincolnshire-based plant in 2020, but in March of the previous year, the company initiated a consultation for closure, citing daily losses of approximately £700,000.
The government had initially taken control of British Steel's operations in April 2025. However, ownership remained with Jingye until this week, which limited the government's ability to direct the company's future.
In a statement released on Sunday, Jingye announced its commitment to seeking "full compensation through legal means to the very end" following the UK's decision to nationalize the firm. A government spokesperson indicated that draft compensation regulations, expected in the autumn, will outline a process overseen by an independent assessor who will determine any payable compensation.
The government stated that the nationalization was undertaken to safeguard a "vital national capability," thereby granting the state the authority to determine the plant's future direction. The move to nationalize British Steel has raised concerns about potential strain on the relationship between London and Beijing, particularly as a new prime minister prepares to assume office.