Chinese steel-maker Jingye Group has secured the future of over 3,000 jobs with the acquisition of the UK and Netherlands assets of British Steel (from the official receiver) for a reported £50 million, although the deal will also result in up to 450 redundancies.

Jingye has also pledged to invest £1.2 billion in the company; this will include the development of an electric-arc furnace on Teesside and the construction of a new 250MW power plant in Scunthorpe.

It will also upgrade the rolling mills at Scunthorpe steelworks to produce high-quality steel products, installing a new rebar line and refurbishing the current rail mill.

Jingye Group’s CEO, Li Huiming (www.jingyesteel.com.cn), said: “It has not been an easy journey since we first announced our intentions in November, but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world.

“Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steel-making.”

British Steel CEO Ron Deelen (www.britishsteel.co.uk) said: “This is a momentous day for our business, and I would like to thank everyone for their dedication during a challenging year.

“I am confident we will seize the incredible opportunity Jingye have given us to build on 150 years of heritage, and further cement British Steel’s reputation as a manufacturer of world-class steel.”

The deal does not include British Steel’s French operations at Hayange, the acquisition of which is still subject to further negotiations with the relevant authorities in France.