British Steel Nationalisation Sparks Compensation Battle with Chinese Firm
- British Steel has been taken back into public ownership after years of financial turmoil, sparking a fierce compensation battle with its former Chinese owner Jingye Group
- The move, announced on Thursday, is aimed at safeguarding the UK’s ability to produce primary steel, but has already strained relations between London and Beijing
- With 2,700 jobs at stake and losses running into millions each day, the nationalisation marks one of the most significant industrial interventions in Britain since the 1980s
The former owner of British Steel has vowed to pursue the UK government for compensation after the Scunthorpe steelworks was taken into public ownership.
China’s Jingye Group, which bought the Lincolnshire plant in 2020, said on Sunday it will seek “full compensation through legal means to the very end” following the UK’s decision to nationalise the site.
Source: Getty Images
The government confirmed draft compensation regulations will be published in the autumn, with an independent assessor deciding “what, if any, is payable.”
Why the UK took control
The government assumed control of British Steel operations in April 2025, but Jingye remained the legal owner until Thursday. Ministers said nationalisation was necessary to safeguard a “vital national capability” and ensure the future of primary steel production in Britain.
Business Secretary Peter Kyle stressed that closure was not an option: “If that business disappears, we will lose the ability for primary steel production in our country, we will become entirely dependent on global supply.”
Jingye launched a consultation on closing the plant in March last year, citing losses of £700,000 a day. The National Audit Office later revealed it was costing the government about £1.3m daily to keep the site running.
The steelworks employs around 2,700 people and supports industries across North Lincolnshire, but has faced years of uncertainty.
Strained UK-China relations
The decision has already strained ties between London and Beijing. China’s commerce ministry said on Friday it “firmly opposes and is strongly dissatisfied with the British government’s decision”, adding that it “seriously infringed” upon Jingye’s rights and “severely undermined the confidence of Chinese companies investing in the UK.”
The UK government responded that negotiations with Jingye failed to deliver “value to the taxpayer.” A spokesperson added: “We highly value our relationship with China and remain open to Chinese investment, and we will continue to work together to deliver a successful trading relationship that provides the best opportunities for British businesses.”
British Steel was last under state ownership in 1988 before being privatised by Prime Minister Margaret Thatcher’s government. Its return to public hands marks a significant shift in industrial policy, just as Andy Burnham prepares to enter Downing Street as prime minister on Monday.
Source: Getty Images
55 countries eligible for chinese visa-free transit
Legit.ng earlier reported that International travellers passing through China can now check whether they qualify for the country's 240-hour visa-free transit programme after Chinese immigration authorities published the latest list of eligible countries for 2026.
The policy allows eligible foreign nationals travelling to a third destination to transit through designated cities and ports in China without obtaining a traditional visa, provided they meet the programme's conditions.
Source: Legit.ng
