Jingye Steel Seeks Compensation From UK Government Following British Steel Nationalization

Jingye Steel Co., Ltd. has issued a formal declaration demanding full compensation from the United Kingdom government following the mandatory nationalization of its subsidiary, British Steel Limited. Jingye acquired British Steel in 2020 when the company was on the verge of insolvency, stating it made the company profitable within a year through internal reforms.

The Chinese steelmaker claims it has since invested substantial capital in modernizing equipment and advancing technology at British Steel. Jingye asserts it fulfilled its tax obligations, created tens of thousands of jobs, and supported local communities, despite facing challenges such as the COVID-19 pandemic, Brexit, and inflation. The company stated that it consistently met its commitments, ensuring timely salary payments without forced layoffs.

Jingye accuses the UK government of failing to uphold its commitments regarding joint investment in British Steel's transformation to achieve net-zero emissions by 2035. According to Jingye, after presenting its transformation plan, the government refused to co-invest. The company claims the government then abruptly changed course, passing legislation in April 2025 that allowed it to take control of British Steel, stripping Jingye of its ownership rights.

Jingye Steel states it reserves all legal rights and will vigorously defend its legitimate interests, seeking full recovery through all available legal means, including international arbitration. Additionally, Jingye intends to pursue legal action against relevant government officials and British Steel management for the hasty acquisition, which it alleges caused substantial losses to public funds and serious damage to the company's operations.