The Official Receiver has expressed his gratitude to the British Steel workforce following a challenging nine months in compulsory liquidation.
David Chapman was appointed into the role last May when debts of £880 million were revealed at a High Court hearing.
Jingye Group completed the purchase of all but the French rail rolling site on Monday.
Mr Chapman, who worked with special managers from EY, said: “The sale of British Steel is the culmination of nine months of work to transition this business to a new owner committed to its future. I am grateful to the British Steel workforce for their professionalism during difficult times as the business continued to trade and to its customers who have continued to show their confidence in the products the company produces.
“This show of commitment was an essential element in concluding the sale.
“My team and the special managers at EY are very pleased to have completed the sale. This is the best outcome in the liquidation and also ensures continued high-quality raw steel production in Scunthorpe.”
As reported, the deal with the Chinese company ensures 3,200 jobs are saved and brings in £1.2 billion of investment over the next decade, across the sites.
A key element is an electric arc furnace on Teesside and a new power station at Scunthorpe, as well as investment in the rolling mills to produce high-quality steel products to optimise the portfolio, the building of a new rebar line and enhancements to the current rail mill.
Most Read
Special manager Sam Woodward said: “Maintaining the business in challenging market conditions whilst the right deal was secured, is testament to the commitment of BSL’s employees, customers, suppliers and the trade unions. Without it, the most likely outcome would have been the closure of the business, the loss of its rich heritage and significant impact on BSL’s supply-chain.
“We would particularly like to thank the BSL workforce for their loyalty, through what has been an uncertain and difficult time for them and their families. The way that they have continued to produce a world leading product is a tribute to their ingenuity and desire to keep this business alive.
“Jingye has shown a great desire to effect ambitious plans that will invest in British Steel and help the business to once again be competitive on the world map.
“Although British Steel has been sold, securing approximately 3,200 jobs, around 400 employees have not received offers of employment in the new company. We recognise this will be a challenging time for those affected and support and advice has already been, and will continue to be, provided.”
The new chair of the Greater Lincolnshire Local Enterprise Partnership , also welcomed the deal.
Pat Doody, said: “The takeover of British Steel by Jingye Group is a real game changer – the company has pledged to invest £1.2 billion in British Steel and the deal safeguards the future of 3,200 workers in Scunthorpe and on Teesside.
“The Greater Lincolnshire LEP has been part of the task force that has been working to support British Steel, its employees and its supply chain partners and we’re extremely pleased that a positive conclusion has been reached.
Don’t miss
“We believe in the future of the Scunthorpe steelworks and now there’s a really positive sense that British Steel can once again become a sustainable global business.
“In the meantime we’re working with our partners through the Business Lincolnshire Growth Hub to support those British Steel employees who have been made redundant and help them to either find work elsewhere or set up their own small businesses.”
Acting for Jingye in the multi-faceted agreement is PwC, with the French element still to go.
Mark Addley, deals partner, said: “We are very pleased to have advised Jingye on the highly complex transaction required to purchase British Steel out of liquidation.
“The deal symbolises significant ambitions to turn around British Steel, represents confidence in the 海角视频’s steel industry and represents a major breakthrough for continuing employment in the North with around 3,200 jobs transferring to Jingye.
“A diverse PwC team supported Jingye on this transaction, which safeguards a truly iconic British business from the threat of permanent closure. The engagement required a broad range of specialist skills in completing cross-border transactions, business restructuring, tax planning and knowledge of the European market to complement the highly skilled steel expertise of Jingye.
“The North has seen its fair share of job losses over recent times with a number of high profile businesses being impacted. This announcement will provide a well needed boost for the local economy while providing security for a substantial number of jobs.
“Jingye is a proud family-run business, and it was a privilege for us to help them with this complex and challenging purchase. We wish Jingye and British Steel every success in the future.”