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Investing.com -- The future of the UK’s steel industry is facing uncertainty as Jingye Group, the Chinese owner of British Steel, has turned down a rescue package offered by the UK government. The package was worth £500 million ($644 million), according to Industry Minister Sarah Jones during her interaction with the Parliament’s Business and Trade Select Committee on Wednesday.
Jones confirmed that the government had made an offer to Jingye Group on Monday, which was declined. However, she did not disclose the amount of the offer. Sky News reported the offer to be worth £500 million, a figure that Bloomberg News says two sources familiar with the matter confirmed to be accurate.
Jingye Group had acquired British Steel from liquidation in 2020. Ever since 2023, the company has been in discussions with the government. These talks began when Jingye Group was considering abandoning its plans to construct two new electric arc furnaces and shutting down its current two blast furnaces, the last of their kind in the UK.
The potential closure of British Steel’s UK operations could jeopardize thousands of jobs in its northern England facilities in Scunthorpe and Teesside. The company currently employs approximately 3,500 people. Despite the rejection of the initial offer, Jones stated that talks are ongoing with Jingye Group.
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