The Guardian reported that British Steel sank to a loss of GBP 140 million in 2020 that showed financial difficulties even after it was taken over by a new Chinese owner. The drop in demand from automotive customers was a key factor in the GBP 140 million operating loss for 2020, as car factories were shut temporarily at the start of the coronavirus pandemic.According to accounts filed at Companies House “British Steel lost GBP 69 a tonne on 2.6 million tonnes of steel produced during 2020, Jingye’s first year in charge. It made revenues of GBP 844 million during the year. The accounts showed a profit overall for the year of GBP 295 million, although that was only achieved through a GBP 410m paper profit resulting from the GBP 24 million knockdown price for assets that were valued at GBP 434 million. Jingye also lent its new British subsidiary GBP 220 million to use as cash to run day-to-day operations.”British Steel was saved from liquidation in 2019 when Jingye stepped in to buy it for only GBP 24 million, after months of subsidized operations as the government pushed to find a buyer for an important industrial employer. Its previous owner, the private equity firm Greybull Capital, exited after only three years in charge. British Steel employs about 3,000 people at a steelworks in Scunthorpe in north Lincolnshire in UK. British Steel is now owned by a holding company, Jingye Steel (UK) Holding Limited
The Guardian reported that British Steel sank to a loss of GBP 140 million in 2020 that showed financial difficulties even after it was taken over by a new Chinese owner. The drop in demand from automotive customers was a key factor in the GBP 140 million operating loss for 2020, as car factories were shut temporarily at the start of the coronavirus pandemic.According to accounts filed at Companies House “British Steel lost GBP 69 a tonne on 2.6 million tonnes of steel produced during 2020, Jingye’s first year in charge. It made revenues of GBP 844 million during the year. The accounts showed a profit overall for the year of GBP 295 million, although that was only achieved through a GBP 410m paper profit resulting from the GBP 24 million knockdown price for assets that were valued at GBP 434 million. Jingye also lent its new British subsidiary GBP 220 million to use as cash to run day-to-day operations.”British Steel was saved from liquidation in 2019 when Jingye stepped in to buy it for only GBP 24 million, after months of subsidized operations as the government pushed to find a buyer for an important industrial employer. Its previous owner, the private equity firm Greybull Capital, exited after only three years in charge. British Steel employs about 3,000 people at a steelworks in Scunthorpe in north Lincolnshire in UK. British Steel is now owned by a holding company, Jingye Steel (UK) Holding Limited
