2 weeks ago
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Jonathan Reynolds, the concern secretary, has discussed the government's determination to prehend power of British Steel with his Chinese counterpart for the archetypal time.
Sky News understands that the destiny of the Scunthorpe-based steelmaker was raised during talks this week betwixt Mr Reynolds and Wang Wentai, China's commerce minister, connected Monday.
A consequent station connected societal media by Mr Reynolds confirming the gathering said the brace "discussed deeper UK-China practice - particularly successful services, concern and WTO betterment - and gathering connected January's palmy Economic and Financial Dialogue to thrust communal growth".
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The concern caput did not notation to British Steel successful the post, though officials confirmed that the institution was raised concisely during their meeting.
It came days aft Sky News revealed that British Steel's Chinese proprietor had hired the starring City instrumentality steadfast Linklaters to research the betterment of hundreds of millions of pounds it invested successful the Scunthorpe-based institution earlier the authorities seized power of its operations successful April.
Linklaters advised Jingye Group connected its acquisition of British Steel successful 2021.
British Steel's equilibrium expanse bears debts worthy adjacent to £1bn, astir of which is said to beryllium owed to Jingye successful the signifier of inter-company loans.
The authorities and Jingye had been astatine loggerheads for weeks implicit the aboriginal of the Scunthorpe plant's blast furnaces.
Since Mr Reynolds, the concern secretary, moved to commandeer power of the UK's second-biggest alloy producer, the authorities has sourced further supplies of earthy materials to guarantee the furnaces' continued operations.
Jingye had been preparing to adjacent them - with the nonaccomplishment of thousands of jobs - aft seeking £1bn successful authorities assistance to facilitate the site's modulation to greener steelmaking.
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Mr Reynolds has indicated that Jingye's shares successful British Steel - which has not yet been formally nationalised - are worthless, and that the authorities does not mean to connection to wage to get them.
A spokesperson for the Department for Business and Trade said: "We are moving intimately with Jingye and a scope of 3rd parties connected options for the future, and we volition proceed enactment connected determining the champion semipermanent sustainable aboriginal for the site."
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