On March 10, the private enterprise- Jingye announced its formal takeover of British Steel with the final trading price of 450 million Chinese Yen.
British Steel is the second steel-making enterprise of Britain, which was acquired by Tata India in 2007. During the period of its great prosperity, its capacity consisted of 90% of the whole steel output of Britain. While since 2016, the company started its banking application due to the lack of bailout loans from the government.
Jingye, situated in Hebei province, is an enterprise with 23.5 thousand workers and is engaged in industries like steel processing, international trading, powder metallurgy, and 3D prints.
On October 26, 2019, Executive managers entered into British steel, starting the acquisition works and finished such works within 2 weeks which usually takes half a year to do. The acquisition framework agreement was signed on November 11, 2019.
The successful acquisition by Jingye Group means the revival of British Steel- the second-largest steel enterprise in Britain, also means 3200 jobs were secured. Jingye plans an investment of £1.2 billion on upgrading and rebuilding British Steel in the next 10 years.
The main products of Jingye Group include deformed bars, plate, rolled flats, round bars while British Steel mainly manufactures products like steel trails, deformed steels, and wire rods and such a takeover can complement product lines of Jingye.
It is analyzed more Chinese steel mills are now transforming their capacities abroad due to the effect of overcapacity cutting and strict environmental protection policies.