Chinese steelmaker Jingye Steel has demanded compensation from the UK government for investment losses following the nationalization of British Steel last week. On Sunday, the company called on the UK to immediately stop 'trampling on international investment rules' and to provide full and effective compensation for all losses incurred.

The UK government took operational control of the company last year after Jingye Group considered closing blast furnaces at its Scunthorpe plant. Officials said the move was necessary to protect the nation's steelmaking capacity and save thousands of jobs, ensuring a domestic supply of steel for construction and defense.

In a statement, Jingye Group accused the British side of 'disregarding dedicated ongoing investment and significant contributions' and offering 'almost zero compensation.' The company noted that the UK had already spent £377 million to operate British Steel, with costs expected to exceed £1.5 billion by 2028.

China's Ministry of Commerce criticized the UK for 'forcibly taking over and nationalizing' British Steel under the guise of national security, 'seriously damaging' Jingye's rights and 'undermining' Chinese investor confidence. The Ministry of Foreign Affairs highlighted a 1986 bilateral investment treaty that protects against expropriation without compensation.

The Scunthorpe plant employs nearly 2,700 workers and produces about three million tonnes of steel annually. However, the company has struggled financially, being sold for £1 in 2016 and taken over by the government in 2019 before Jingye's acquisition in 2020. The UK government claims British Steel was losing hundreds of thousands of pounds daily.

Source: www.aljazeera.com