CRU: Jingye to sue UK for British Steel renationalization

Legislation giving the government ownership of the loss-making integrated works at Scunthorpe, eastern England, took effect last week. London has run British Steel since April 2025 when it took over from Jingye after doubts arose about the company’s intention to keep operating the plant. 

In response, Jingye issued a statement on July 21 telling the British government to “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 [in British Steel].

“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.”

The company has initiated consultations on the applicable bilateral investment treaty and reserves all legal rights and remedies available to it, including international arbitration proceedings.

“Jingye will not compromise in the defense of its lawful rights and interests. 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.”

The Hebei-based company cited a UK National Audit Office report stating the UK government had spent £377 M ($507 M) on its intervention in British Steel by last January. The figure was expected to exceed £600 M ($799 M) by the end of June and could top £1.5 bn ($1.9 bn) by 2028.

Jingye added: “The rule of law must not be violated, and the sanctity of contractual commitments must not be undermined.”

The British government says an independent assessor will judge if any compensation is due to Jingye.

British Steel had been in public ownership until 1988.