skip to Main Content

British Steel Asks Govt For Cash Injection

The company who bought British Steel is reportedly asking the government for urgent financial support.


Jingye Group took charge of the manufacturer two years ago after British Steel became insolvent, but it now needs a cash injection to stay operational, Sky News revealed.


Though the amount of money it requires to keep its two blast furnaces functioning is unknown, it is thought the Chinese organisation could be asking for “hundreds of millions of pounds”.


Without this financial support, the 4,000 people who work at the Scunthorpe facility could be made redundant.


A spokesperson for the Department for Business, Energy and Industrial Strategy was reported as saying: “We recognise that businesses are feeling the impact of high global energy prices, particularly steel producers, which is why we have announced the Energy Bill Relief Scheme to bring down costs.”


This initiative was introduced last month for everyone on a non-domestic contract. It will provide a discount on gas and electricity prices to ease financial difficulties over the winter.


It was added: “This is in addition to extensive support we have provided to the steel sector as a whole to help with energy costs, worth more than £780m since 2013.”


Despite this, soaring prices is making it difficult for Jingye Group to continue operating the furnaces in Lincolnshire.


Without the funding, the group might import steel from China to distribute at British Steel’s sites instead.


A spokesperson from British Steel admitted: “We are facing a significant challenge because of the economic slowdown, surging inflation and exceptionally high energy and carbon prices.”


For material handling companies, get in touch today.


More Posts

Don Valley Engineering Ltd

MHEA Executive Committee Meeting At Don Valley Engineering Ltd Left to right: Ian Atkinson (Don Valley Engineering Ltd),  Linda White (Secretariat), James Bullock (President), Matt Beverley (Vice President), Ben Dunn(

Hoverdale UK Ltd

Solid wins for Hoverdale at the 2024 SHAPA Awards   Hoverdale UK Limited, a global provider of conveyor system equipment and on-site plant engineering services, won multiple awards at the

Schenck Process UK Ltd

  Expert in material transformation technologies announces rebranding on 13 May 2024 Climate-neutral circular economy: Schenck Process becomes Qlar   The German-headquartered Schenck Process is taking the lead in climate-neutral

Port of Tyne Site Visit

THE PORT OF TYNE  SITE VISIT 22nd FEBRUARY 2024 On Thursday 22nd February 2024, members of the MHEA had the privilege of embarking on a guided tour of the Biomass Fuel

Send Us A Message

Back To Top