Bailout plea from Chinese owner of British Steel

THE owner of British Steel has asked for a government bailout to save the jobs of thousands of steel workers in the north of England.

Jingye Group, a Chinese company that bought Britain’s second-biggest steel producer out of insolvency in 2020, told ministers that its two blast furnaces would not be viable without financial support from taxpayers.

Insiders told Sky News the amount required to keep the blast furnaces operational in Scunthorpe, north Lincolnshire, could be “hundreds of millions of pounds”.

British Steel has about 4,000 employees and supports the livelihoods of thousands of people in its supply chain.

Last night it was unclear whether the rescue package was requested as a grant or loan.

Despite state support, soaring energy costs are weighing on the industry, as is slowing global demand and excess production capacity, which is lowering prices.

The Government said it was working with the company to “understand the best way forward as it seeks to secure a more sustainable future”.

A spokesman for the Department for Business, Energy and Industrial Strategy said the Government had already provided support for the steel sector with more than £780m since 2013 to help with energy costs, while the Energy Bill Relief Scheme is in place to lower costs.

Charlotte Childs, of trade union GMB, said if the furnaces were to close, Port Talbot would be the only integrated steelworks left in Britain. That would leave the country dangerously reliant on Chinese steel, she said.

A British Steel spokesman said: “We are investing hundreds of millions of pounds in our long-term future but like most other companies we are facing a significant challenge because of the economic slowdown, surging inflation and exceptionally high energy and carbon prices.”