Jingye Group, a leading Chinese steelmaker, have announced their purchase of British Steel from the Official Receiver.
The completion of the sale on March 9, will preserve 3,200 high-skilled jobs in Workington, Scunthorpe, Teesside and elsewhere, securing a long-term, sustainable future for steelmaking in the region as a key part of Britain’s industrial heritage.
A further approximately 100 jobs will transfer to Barrett Steel following the sale of four British Steel distribution centres.
The completion of the deal will also unlock the pledged investment of £1.2 billion.
Workingtons TSP Engineering site, formerly a stand alone entity, will become absorbed into Jingye Group, and will retain its name.
Jingye believes that the employees of British Steel, its customers, and those who rely on the business, deserve certainty on their future and has therefore agreed to first complete the acquisition of British Steel operations in the UK and Netherlands.
Jingye will continue to work hard to reach a positive conclusion on the future of the Hayange plant in France.
The agreement follows comprehensive and constructive discussions with the Government, unions, suppliers and employees in the UK and the Netherlands.
Jingye CEO Li Huiming, said: "We are delighted to have reached this agreement and look forward to completing the initial transaction over the coming days so we can begin a new chapter in British steelmaking.