London, July 20 (SANA) China’s Jingye Group said on Sunday it would pursue legal action to seek full compensation from the British government after the nationalization of British Steel, following London’s decision to take full ownership of the loss-making company.
In a statement, Jingye said it would seek “full compensation through legal means to the very end,” after the British government completed the nationalization of the Scunthorpe steelworks on Thursday.
A UK government spokesperson said draft compensation regulations, expected to be published in the autumn, would establish a process under which an independent assessor would determine whether compensation is payable and, if so, how much, according to BBC.
Jingye acquired British Steel in 2020, but announced plans last year to close the Scunthorpe plant, saying it was losing around £700,000 ($940,000) a day and was no longer financially viable.
The British government took operational control of the company in April 2025 to prevent the closure of the country’s last producer of primary steel. Until this week, however, Jingye remained the legal owner, limiting the government’s ability to determine the company’s future.
London said the decision to bring British Steel into public ownership was intended to protect a “vital national capability” and preserve domestic primary steel production.
The move prompted criticism from Beijing, with China‘s Ministry of Commerce saying on Friday that the nationalization had infringed Jingye’s legitimate rights and undermined the confidence of Chinese companies investing in Britain. The ministry said China would support its companies in safeguarding their interests.
The British government said commercial negotiations with Jingye had failed to produce an agreement that represented value for taxpayers, while stressing that Britain remained open to Chinese investment and committed to maintaining a constructive trade relationship with China.
British Steel employs around 2,700 workers and supports thousands of jobs across North Lincolnshire. According to the UK’s National Audit Office, keeping the plant operational currently costs the government about £1.3 million a day.
Business Secretary Peter Kyle said allowing the plant to close was not an option, warning that Britain would lose its ability to produce primary steel domestically and become entirely dependent on international suppliers.
British Steel was previously state-owned before being privatized in 1988 under then-Prime Minister Margaret Thatcher.
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