Chinese British Steel owner rejects UK government subsidy

Unlock Digest Editor free

Halef’s roller, FT editor chooses his favorite stories in this weekly newsletter.

The Chinese British Steel owner rejected the £ 500 million rescue offer from the UK government, raising more than a thousand jobs in Steelmaker.

A letter sent to Jingye on Monday offered money to maintain business and help it go to more green production after almost two years Rescue negotiations Between UK officials and the company.

However, on Wednesday, Jinggi sent a letter to the government, in which he abandoned the approach, according to people acquaintance with the situation.

Trade unions are afraid of companies operating 4,000 people on sites, including the Scunthorpe plant in Lincolnshire, can start reporting on Thursday.

Sarah Jones, Minister of Energy, said on Wednesday the House House of Business Commission that the proposal was rejected, but the government “still talked a lot with British steel every day.”

Jones told the deputies on the committee that there was no “term” in conversations with the company.

British steel did not immediately respond to a comment request.

In September, the UK in the UK operates the last two remaining furnaces after the Indian became closed their last in Port Talbate, Southern Wales, in September.

Ministers hoped to repeat the transaction they concluded last year with Tata Steel, in which they provided £ 500 million to help the company Switch to Greenmer Steelmaking.

The Labor Government is 2.5 billion of the sterling to the steel industry to help reduce carbon emissions and reach pure zero goals in the UK by 2050.

Last month, steel unions put forward a plan to open British steel explosions until two less carbon electric stoves work and work.

Trade unions have been concerned that the rapid closure of explosive furnaces would lead to a loss of 2,000 jobs over several months.

However, within the framework of the trade union plan, the government would provide an additional 200 million sterling to mitigate the expected carbon costs associated with maintaining the launched furnaces.

The advantage of the government, she added, would be for explosive furnaces to continue at least temporarily.

Liam Birn, chairman of the Business Committee, said he was “deeply disturbing.”

“During the war in Europe, the growth of global tensions and economic uncertainty, we need more stability, not less … We need a steel for an explosion made here for us,” said a deputy.

“Now ministers must answer and respond quickly: if not this deal, what? If not now, if?