The Official Receiver, David Chapman, and Special Managers from EY – Alan Hudson, Hunter Kelly and Sam Woodward – announced today that certain parts of the business and assets of British Steel Limited (BSL) have been sold to Jingye Steel (UK) Ltd and Jingye Steel (UK) Holding Ltd (together Jingye).
The sale to Jingye includes: the steelworks at Scunthorpe; UK mills in Teesside and Skinningrove; shares of FN Steel BV; and the TSP Engineering business based in Cumbria. Discussions continue to resolve the regulatory approvals required to sell BSL’s French subsidiary, based in Hayange, to Jingye.
Special Manager, Sam Woodward at EY, commented: “Maintaining the business in challenging market conditions whilst the right deal was secured, is testament to the commitment of BSL’s employees, customers, suppliers and the Trade Unions. Without it, the most likely outcome would have been the closure of the business, the loss of its rich heritage and significant impact on BSL’s supply-chain.
“We would particularly like to thank the BSL workforce for their loyalty, through what has been an uncertain and difficult time for them and their families. The way that they have continued to produce a world leading product is a tribute to their ingenuity and desire to keep this business alive.
“Jingye has shown a great desire to effect ambitious plans that will invest in British Steel and help the business to once again be competitive on the world map.”
Sam Woodward added: “Although British Steel has been sold, securing approximately 3200 jobs, around 400 employees have not received offers of employment in the new company. We recognise this will be a challenging time for those affected and support and advice has already been, and will continue to be, provided.”
The Official Receiver, David Chapman - appointed by the High Court on 22nd May 2019 as liquidator along with Special Managers at EY to assist - commented: “The sale of British Steel is the culmination of nine months of work to transition this business to a new owner committed to its future. I am grateful to the British Steel workforce for their professionalism during difficult times as the business continued to trade and to its customers who have continued to show their confidence in the products the company produces. This show of commitment was an essential element in concluding the sale.
“My team and the Special Managers at EY are very pleased to have completed the sale. This is the best outcome in the liquidation and also ensures continued high-quality raw steel production in Scunthorpe.”