Steelworkers' unions have met with Jingye Group officials as the Chinese company looks to finalise its purchase of British Steel.
And while they were impressed with the “encouraging plans for major investment in the business” – headquartered in Scunthorpe – concerns over impacts on employment numbers have been stressed.
The National Trade Union Steel Co-ordinating Committee is made up of senior officials from GMB, Unite and Community.
In a statement they said: “The Steel Committee and senior officials met with Jingye representatives yesterday, who presented their strategy for British Steel which included encouraging plans for major investment in the business.
“However, their proposals to turnaround the business do include impacts on employment and detailed discussions will now take place to fully understand Jingye’s plans and get a deal over line.
“Those discussions will be ongoing over a number of days and, due to the sensitive nature of the issues on the table, we will not be providing a running commentary on developments.
“As we have said before, if the business is to succeed it must retain high quality jobs with good terms and conditions and this will guide our position through the ongoing talks.
“It cannot be just employees who are asked to make sacrifices for the success of the new business.
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“For the company to succeed then everyone involved needs to make a contribution, including key suppliers.
“It’s in the interests of all stakeholders to secure British Steel and the jobs and communities that depend on its success.”
It comes after the takeover plan, understood to be valued between £50 million and £70 million, was approved by Chinese government bodies.
The Financial Times has reported the group, which swooped after no deal emerged from an exclusivity period of due diligence with Ataer, part of the Turkish military fund, has obtained approval in Hebei province.
The Hebei Bureau and Commerce and the Hebei Development and Reform Commission have given the go-ahead in line with rules about the takeover of foreign companies, according to the FT.
A spokesperson for Jingye Group said: “Jingye has held constructive discussions with union representatives during which the company outlined its ambitious investment plans for British Steel.
"We look forward to working together further with the unions and employees over the coming weeks, as well as continuing talks with the government and other stakeholders. We firmly believe in the opportunities at British Steel and are committed to its long-term future."
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Negotiations ongoing are understood to centre around job-retention – with 4,000 in Scunthorpe and the North East – as well as supplier terms and the French government. A crucial rail plant is located in Hayange.
British Steel was placed in compulsory insolvency after debts of £880 million were revealed at a high court hearing in May, stripping Greybull of control with the Official Receiver appointed.
This week Liberty Group has announced it is looking to shed 350 jobs across sites in South Wales and South Yorkshire.
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What we know of Jingye Group
Jingye Group describes itself as a multi-industrial company specialising in iron and steel.
A £10 billion turnover operation, a total of 23,500 employees work for the company, which is headquartered 300km south west of Beijing in Pingshan, neighbouring Xibaipo – once home to the Central Committee of the Communist Party of China.
This year has seen it ranked 217th in the top enterprises of China, and it has topped the region it operates from for the past decade.
It is recognised as a global large scale production base for deformed steel bar and a pioneer of high-tensile reinforcing steel.
Jingye has successfully developed high quality steel such as ship plate, bridge plate, steel for high-rise buildings, high-strength seismic resistance and round steel.
Applications have included many domestic high profile infrastructure construction projects, with Beijing Daxing International Airport, Three Gorges Dam, and the China Pavilion at Shanghai Expo all proud exponents.
It has been awarded famous brand and trustworthy brand accreditations and is listed as an “excellent supplier” by China Railway Group Ltd, Power China, China Road and Bridge Corporation and China State Construction.
A legacy in chemicals, formed in 1988, Jingye emerged in steel close to the turn of the century, and five years ago acquired Inner Mongolia Ulanhot Iron and Steel Limited Liability Company. Other interests include powder metallurgy, 3D printing, tourism, hotels, and real estate, with the later three combined for the creation of mountainous resort villages.
Additive manufacturing will be of significant interest, so too the advances in short-process thin strip casting and rolling of steel, cutting costs by 35 per cent, and water and power use by 80 per cent.
Global aspirations are clearly defined by the company when it comes to iron and steel products.
It operates 18 blast furnaces, producing 15 million tonnes of steel annually, exporting to 80 countries.
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