China’s Jingye group is hopeful of bagging the deal for Hayange steel plant in France, a profitable plant owned by British Steel, according to a company statement reported in media.
While Jingye had acquired British Steel earlier this year which comprised majorly of the company’s steel assets in the United Kingdom and the Netherlands, it did not involve Hayange. Other bidders for Hayange include industry giant ArcelorMittal and Liberty Steel.
The Hayange plant was blocked from being sold to the Chinese conglomerate by the French government given its strategic importance in supplying rails to the state-owned French National Railway Company (SNCF). The plant processes crude steel produced at Scunthorpe. France is also worried the acquisition could allow the company to bypass the EU’s anti-dumping regulations.
Jingye said it is conducting negotiations with relevant parties of the French government to abolish the block on the Chinese conglomerate.
France hopes that the winning bidder will take over another steel mill Ascoval, which has an agreement to supply to Hayange steel mill.
Jingye, headquartered in China’s Hebei provine, proposed to invest €88mn in these two factories, with €60mn dedicated to the Hayange factory over a five-year period in addition to bearing Ascoval-related debts.
Jingye produces rebar, medium plate, coiled plate, and round bar.
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