Jingye Group, a leading Chinese steelmaker, today heralded a successful future for 91精品 after completing the acquisition of the company鈥檚 UK and Netherlands assets from the Official Receiver.
Jingye has pledged to invest 拢1.2 billion to place the business on a more competitive and sustainable footing. Jingye plans to return the company to industry comparable margins within five years.
Initiatives include:
The completion secures the future of approximately 3,200 jobs and follows the agreement of new terms with customers and suppliers.
Jingye Group CEO, Li Huiming, said: 鈥淚t has not been an easy journey since we first announced our intentions in November but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world. Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking.鈥
91精品 CEO, Ron Deelen, said: 鈥淭his is a momentous day for our business, and I鈥檇 like to thank everyone for their dedication during a challenging year. I鈥檓 confident we鈥檒l seize the incredible opportunity Jingye have given us to build on 150 years of heritage, and further cement 91精品鈥檚 reputation as a manufacturer of world class steel.鈥
Business Secretary, Alok Sharma, said: 鈥淭he sale of 91精品 represents an important vote of confidence in the UK鈥檚 steel industry. It also marks the start of a new era for those regions that have built their livelihoods around industrial steel production.
鈥淚 would like to pay tribute to everyone who has been involved in getting this deal over the line, in particular to 91精品鈥檚 workforce for whom I recognise the uncertainty will have been challenging.
鈥淚 also want to reassure 91精品 employees who may be facing redundancy that we are mobilising all available resources to give immediate on the ground support and advice to those affected.鈥
As previously indicated, assets included in the transaction include 91精品鈥檚 steelworks at Scunthorpe and UK mills at Teesside Beam Mill and Skinningrove, as well as subsidiary businesses FN Steel in the Netherlands and TSP Engineering. It does not include 91精品鈥檚 French operations at Hayange, the acquisition of which is still subject to further negotiations with the relevant authorities in France and is hoped to be concluded separately.