Jingye Group, a leading Chinese steel-maker, recently announced that it had exchanged contracts and reached an agreement to acquire certain assets of British Steel (www.jingyesteel.com.cn).

The agreement will see the two businesses combine to create a world-class steel-making group “with global scale and ambition.

"The combination will bring together expertise from both businesses to help secure a long-term future for British Steel’s operations through the continued production of high-quality steel products.

"A completed sale will also preserve thousands of jobs in a key foundation industry for the UK.”

Jingye Group chairman Li Ganpo, said: “We are delighted to have reached this agreement.

As a young company with large ambitions, we have long admired British Steel and appreciate its illustrious heritage.

"We share with the thousands of British Steel workers a passion for this industry, and we are determined that together we can transform this business.”

The company has said it plans to invest £1.2 billion in the business over the next decade in upgrading the plants and machinery, improving the new company’s environmental performance and boosting energy efficiency to place the operations on a more competitive and sustainable footing.

“Jingye will further help to ensure a long-term sustainable future for British Steel and its employees by investing in identifying new markets and products.

“Jingye anticipates making offers to as many employees across the business as possible.”

Under the terms of the agreement, Jingye would acquire certain assets of British Steel from the Official Receiver, subject to regulatory approvals and certain employee consultation procedures.

This would include the steelworks at Scunthorpe and UK mills at Teesside Beam Mill and Skinningrove, plus the subsidiary businesses FN Steel, British Steel France and TSP Engineering.

It is anticipated that the shares owned by British Steel Ltd in Redcar Bulk Terminal Ltd would also be included in the sale.

“The company will now engage with the union representatives and employees ahead of completion of the sale, at which point the Official Receiver would hand over the running of British Steel to Jingye.

"Jingye is committed to preserving UK jobs and investing in a workforce that can help to strengthen British Steel’s UK operations, and it has already started the process of engaging positively with the unions and employees.”