Former British Steel owner demands compensation

British Steel’s former Chinese owner is demanding compensation after the Government shifted the operator into public ownership.

Jingye Group is threatening legal action citing Westminster’s “trampling on international investment rules”.

The Government last week nationalised British Steel in a move it says will protect “the future of steel production”.

It came after ministers last year took operational control following Jingye Group’s plans to close British Steel’s Scunthorpe blast furnaces.

However, in quotes reported by the Associated Press, Jingye Group said: “The UK disregarded Jingye’s continuous investment and significant contribution, and was only willing to provide almost zero compensation.”

China’s government has also said it is “strongly dissatisfied” with the decision, with China’s Ministry of Commerce adding the move dealt “a severe blow to Chinese companies’ confidence in investing in the UK”.

The Department for Business and Trade said the move was essential to maintain steel production at Scunthorpe and protect the company’s future and UK supply chains.

Reacting to the move, outgoing Prime Minister Sir Keir Starmer last week said: “British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength.

“This decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.”

The announcement followed the Steel Industry (Nationalisation) Act 2026 becoming law, which allows ministers to transfer steel businesses’ shares or property into public ownership.

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