London Daily

Focus on the big picture.
Monday, Dec 30, 2024

Shapps steps up talks with British Steel-owner as job cuts loom

Shapps steps up talks with British Steel-owner as job cuts loom

Grant Shapps, the business secretary, met senior Jingye Group executives on Wednesday to discuss its request for hundreds of millions of pounds of taxpayer funding.

Grant Shapps, the business secretary, has held a further round of talks with the Chinese owner of British Steel as the spectre of redundancies looms over one of the UK's biggest industrial manufacturers.

Sky News has learnt that Mr Shapps met top executives from Jingye Group on Wednesday to discuss its request for state aid to help decarbonise Britain's second-largest steel producer.

It comes little more than a month since the newly appointed business secretary met Jingye chiefs amid suggestions that the Chinese group wants roughly £500m of taxpayer aid to avert the threat of blast furnace closures and mass redundancies at British Steel's Scunthorpe base.

Jingye, which took control of an insolvent British Steel in 2020, has in recent months begun making preparations for the permanent closure one of the plant's two blast furnaces.

Such a move would entail as many as 2,000 redundancies at the company, dealing a blow to Britain's industrial manufacturing capability and the local economy.

Mr Shapps' predecessor, Jacob Rees-Mogg, who lasted just weeks as business secretary under Ms Truss, opened formal talks with Jingye in October about the provision of governmentfunding to help British Steel decarbonise.

One of the pre-conditions set by Whitehall for the talks was that Jingye would not cut jobs at British Steel while the discussions were ongoing.

Tata Steel, which is the biggest player in the UK steel sector, has also requested financial help from the government.

British Steel employs about 4,000 people, with thousands more jobs in its supply chain dependent upon the company.

The Department for Business, Energy and Industrial Strategy (BEIS) declined to comment, while British Steel has previously said: "We are continuing formal talks with the UK Government to help us overcome the global challenges we currently face.

"The government understands the significant impact the economic slowdown, rising inflation and exceptionally high energy and carbon prices are having on businesses like ours and we look forward to working together to build a sustainable future."



Industrial consumers of energy have complained this year that soaring prices are imperilling their ability to continue operating.

The request for financial support from Jingye poses a political headache for ministers, given the scale of the potential job losses which might result from a refusal to provide taxpayer aid.

An agreement to provide substantial taxpayer funding to a Chinese-owned business, however, would inevitably provoke outrage among Tory critics of Beijing.

China's role in global steel production, after years of international trade rows about dumping, would make any subsidies even more contentious.

In May 2019, the Official Receiver was appointed to take control of the company after negotiations over an emergency £30m government loan fell apart.

British Steel had been formed in 2016 when India's Tata Steel sold the business for £1 to Greybull Capital, an investment firm.

As part of the deal that secured ownership of British Steel for Jingye, the Chinese group said it would invest £1.2bn in modernising the business during the following decade.

The Telegraph recently reported that only a fraction of that promised commitment had materialised.

Jingye's purchase of the company, which completed in the spring of 2020, was hailed by Boris Johnson, the then prime minister, as assuring the future of steel production in Britain's industrial heartlands.
Newsletter

Related Articles

0:00
0:00
Close
Channel Tragedy: Three Dead in Record Year for Perilous Crossings
Jimmy Carter: The Legacy of America's Centennial Statesman
Record Tragedy in the Channel: Three Dead and 2024 Becomes Deadliest Year for Sea Crossings
Operation Beepers: A Remarkable Triumph of Israeli Intelligence Against Hezbollah
Rail Unions Keep the UK in a Chokehold: The Battle Over Power and Pay
Today, Biden allocated an additional $1.25 billion to Ukraine.
Biden Reportedly Regrets Decision to Step Aside, Claims He Could Defeat Trump
Russian Tanker Seized in Baltic Investigated for Espionage
Elon Musk's Controversial Endorsement Adds Tension to German Politics
Putin Extends Olive Branch Amidst Tensions Over Azerbaijan Airlines Crash
Elon Musk’s Controversial Endorsement of Germany's AfD Sparks Editorial Resignation
The Missteps of 2024: Teams, Coaches, and Players Who Fell Short
Frustrated Canadian tells Trudeau to "Get out of BC" during his Christmas vacation ski trip
In Syria today, responding incorrectly to the question 'Are you Alawi or Sunni?' can be detrimental to your well-being.
Restricted Area in Australia
NATO to Amplify Baltic Defenses Amidst Shadowy Undersea Sabotage Claims
Dense Fog Disrupts Over 1,000 Flights at Heathrow and Gatwick
Biden Administration Commits Additional Military Aid to Ukraine
Biden Boosts Ukrainian Defense as North Korea Sinks Deeper into Russia's War
Azerbaijan Airlines Crash Triggers Speculation of Russian Misfire
Western Support for Ukraine Wanes Amidst Trump’s Return and Russian Resurgence
Ukraine Strikes Russian Missile Factory, Deepening Tensions
Ireland's Medieval Ecclesiastical Register Undergoes Conservation
The Closure of the Global Engagement Center: Controversy, Claims, and Conclusions
The Rise of Princess Charlotte: A New Star in the Royal Firmament
Diplomatic Waters: Finland's Seizure of a Russian-linked Vessel in the Baltic Sea
Reform UK Declares Itself the 'Real Opposition' Amid Membership Surge
Pope Francis Opens Holy Door at Major Italian Prison
Britain’s ‘Wild West’ of Weight-Loss Jab Promotions Faces Growing Scrutiny
Pope Francis Urges Unprecedented Dialogue Amid Escalating Ukraine-Russia Tensions
Dozens Survive Kazakhstan Passenger Jet Crash Amid Tragedy
Kazakhstan Air Disaster: Dozens Survive as Authorities Probe Fatal Plane Crash
Postal Workers Demand Government Probe Into Royal Mail 'Fake Deliveries' Scandal
Explosion Sinks Russian Cargo Ship Ursa Major in Mediterranean
Mystery Shrouds U.S. Citizen Gene Spector's 15-Year Espionage Sentence in Moscow
Zelenskyy Alleges 3,000 North Korean Casualties in Russian Conflict
North Korea's Unseen Hand: Over 1,000 Troops Suffer Casualties in Ukraine
Discovery of 50,000-Year-Old Baby Mammoth in Siberia Fascinates Scientists
Magdeburg Attack Fuels AfD's Political Momentum Amid Rising Tensions
In Magdeburg, Germany, a man is arrested by the police for declaring, "I am a Christian."
UK News Roundup: London Shooting, Travel Disruptions, and Legal Battles
UK Economy Teeters on Recession's Edge Amid Revised Growth Figures
Australian Man Captured in Ukraine Conflict; Government Seeks Answers
Zelenskyy’s Push for NATO: A High-Stakes Gamble for Eastern European Stability
Slovak Pragmatism or EU Discord: Prime Minister Fico’s Polarizing Moscow Engagement
The Ripple Effects of a Russian Victory in Ukraine: A Global Tectonic Shift
U.S. Government Shutdown Averted by Last-Minute Agreement
Tragedy in Magdeburg: Saudi Doctor's Alleged Terror Attack at German Christmas Market Ignites Global Security Debate
Tragedy Strikes at Magdeburg Christmas Market: Terror Attack Leaves Five Dead
Texas Congresswoman Kay Granger Discovered in Nursing Home Following Six Months of Inaction
×