Formal Statement by Jingye Steel Co., Ltd.
SHIJIAZHUANG, China, July 21, 2026 /PRNewswire/ -- In relation to the UK Government's compulsorynationalisation of British Steel Limited ('British Steel'), a subsidiary of Jingye Steel Co., Ltd. ('Jingye'), Jingye hereby issues the following formal statement:
I. Jingye's Significant Contribution to British Steel and the UK Steel Industry
In 2020, when British Steel was on the brink of insolvency, Jingye stepped in and lawfully acquired the company, rescuing one of Britain's most historic steelmakers from imminent collapse. Within one year of the acquisition, Jingye restored British Steel to profitability through internal reform and operational optimisation.
Over the following five years, Jingye continued to invest substantial capital in modernising equipment, advancing technology and strengthening British Steel's operational capabilities. Jingye fulfilled its tax obligations in full, created tens of thousands of jobs in the local economy, supported local communities and contributed to the development of the wider industrial supply chain.
Throughout a series of unprecedented challenges, including the COVID-19 pandemic, Brexit, the Russia–Ukraine conflict and sharply rising inflation, Jingye consistently honoured its commitments, donated essential supplies and stood alongside its employees through difficult times, maintaining stable operations to ensure that wages were paid in full and on time—without making a single compulsory redundancy and without missing a single wage payment. Jingye's word is its bond.
Through its tangible actions, Jingye has made a substantial contribution to the survival and continued development of British Steel and to the revitalisation of the UK steel industry.
II. Overview of Events Concerning British Steel
In September 2021, in response to the UK Government's strategic requirement that iron ore-based steelmakers achieve net-zero emissions by 2035, Jingye entered into multiple rounds of negotiations with the Government concerning joint investment in the transformation of British Steel. The UK Government raised no objection to the transformation plan submitted by Jingye, yet consistently refused to honour its commitment to co-invest.
However, just as Jingye was proceeding with the implementation of the transformation in accordance with the established plan, the UK Government abruptly changed course. On 12 April 2025, it passed the Steel Industry (Special Measures) Act 2025 within just six hours and assumed control of British Steel. Jingye was thereby deprived, as ashareholder, of all rights of control, management and economic benefit associated with its shareholding.
Following the takeover, Jingye engaged actively with the UK Government regarding compensation. The UK Government nevertheless refused to provide reasonable compensation on the grounds that British Steel had 'no value'. On 16 July 2026, following the passage of the Steel Industry (Nationalisation) Act 2026, the UK Government formally notified Jingye in writing that British Steel had been brought into public ownership.
According to a report by the National Audit Office (NAO), by the end of January 2026, the UK Government had already spent £377 million on its intervention in British Steel. This figure was expected to exceed £600 million by the end of June 2026 and could exceed £1.5 billion by 2028.
III. Jingye Reserves All Legal Rights, Will Resolutely Defend Its Lawful Rights and Interests, and Pursue Full Recovery Through All Available Legal Means
The rule of law must not be violated, and the sanctity of contractual commitments must not be undermined. Jingye hereby makes the following formal statement to the UK Government:
1. Immediately cease using domestic law to override or circumvent international investment rules, and provide prompt, adequate and effective compensation for all losses suffered by Jingye in respect of its investment.
2. Every element of Jingye's investment is meticulously documented and fully verifiable. Jingye will pursue full recovery of all amounts lawfully due to it, without concession.Jingye has already initiated consultation procedures pursuant to the applicable bilateral investment treaty and expressly reserves all legal rights and remedies available to it, including the right tocommence international arbitration proceedings. Jingye will not compromise in the defence of its lawful rights and interests.
3. Jingye will take legal action to hold the relevant government officials and members of British Steel's management legally accountable for the hasty takeover of British Steel, which was carried out without any preparation and in the absence of any operating plan, causing substantial losses to the public purse and serious harm to the company's operations.
Jingye Steel Co., Ltd.
21 July 2026
(Note: In the event of any discrepancy or inconsistency between the original Chinese text and this English translation, the original Chinese text shall prevail.)
