Chinese conglomerate Jingye Group moved closer to finalising a rescue package for the insolvent British Steel after reaching an agreement with trade unions on the future terms of employment and scale of the workforce, according to local media reports on Jan 22.
Davis Index understands that the National Trade Union Steel Coordinating Committee, which includes the Community and Unite unions, met with Jingye officials to discuss proposals which “include impacts on employment.”
Trade unions will now present the deal to their members and seek their consent on the terms offered. Jingye still needs to reach agreement with suppliers and the French government’s approval for the sale of the company’s plant in Hayange.
British Steel, formerly owned by Greybull Capital prior to entering administration, produced 2.8mn mt of steel in 2018 and has an annual steel-making capacity of 4.5mn mt; producing construction steel, rail, wire rod, and special profiles.