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British Steel secures sales contract with China's Jingye Group

British Steel secures sales contract with China's Jingye Group
REUTERS/Scott Heppell/File Photo
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China's Jingye Steel will acquire the "business and assets" of British Steel, the UK government's Insolvency Service announced on Monday.

Britain's second-largest steelmaker was forced into liquidation in May, notably threatening thousands of jobs in Scunthorpe, a town in northeast England.

The government did not reveal the cost of the agreement, though in May it was reported the company needed to secure £75m (€85m).

Read more: British Steel's liquidation threatens 5,000 jobs hours before Euro election

The government announced the sales contract with the Chinese steel group on its website but stipulated that the "completion of the contract is conditional on a number of matters" including "regulatory approvals."

Jingye Group did not immediately respond to a request for comment.

Gareth Stace, director-general of lobby group UK Steel, told the BBC Radio 4's Today programme that the purchase would "complement" Jingye's production and that it was a welcome investment from the Chinese group.

In August, a Turkish fund was reported to be the front-runner to buy the steelmaker.

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