The Official Receiver, David Chapman, and Special Managers from EY – Alan Hudson, Hunter Kelly and Sam Woodward – announced today that certain parts of the business and assets of British Steel Limited (BSL) have been sold to Jingye Steel (UK) Ltd and Jingye Steel (UK) Holding Ltd (together Jingye).
The sale to Jingye includes the steelworks at Scunthorpe; UK mills in Teesside and Skinningrove; shares of FN Steel BV; and the TSP Engineering business based in Cumbria.
Discussions continue to resolve the regulatory approvals required to sell BSL’s French subsidiary, based in Hayange, to Jingye.
The sale secures approximately 3,200 jobs, while around 400 employees who have not received offers of employment are being supported by Job Centre Plus and the National Career Service to find new employment.
The Official Receiver said:
The sale of British Steel is the culmination of nine months of work to transition this business to a new owner committed to its future. I am grateful to the British Steel workforce for their professionalism during difficult times as the business continued to trade and to its customers who have continued to show their confidence in the products the company produces. This show of commitment was an essential element in concluding the sale.
My team and the Special Managers at EY are very pleased to have completed the sale. This is the best outcome in the liquidation and also ensures continued high-quality raw steel production in Scunthorpe.
Special Manager, Sam Woodward at EY, commented:
Maintaining the business in challenging market conditions whilst the right deal was secured, is testament to the commitment of BSL’s employees, customers, suppliers and the Trade Unions. Without it, the most likely outcome would have been the closure of the business, the loss of its rich heritage and significant impact on BSL’s supply-chain.
We would particularly like to thank the BSL workforce for their loyalty, through what has been an uncertain and difficult time for them and their families. The way that they have continued to produce a world leading product is a tribute to their ingenuity and desire to keep this business alive.
Jingye has shown a great desire to effect ambitious plans that will invest in British Steel and help the business to once again be competitive on the world map.
Sam Woodward added:
Although British Steel has been sold, securing approximately 3,200 jobs, around 400 employees have not received offers of employment in the new company. We recognise this will be a challenging time for those affected and support and advice has already been, and will continue to be, provided.
Further information
- On 22 May 2019 the High Court ordered British Steel Limited into compulsory liquidation. The Official Receiver was appointed as liquidator
- This page is being kept updated
- You can subscribe to receive an email alert when updates are available
Special Managers
The Court has appointed Hunter Kelly, Sam Woodward and Alan Hudson of EY to act as Special Managers to assist the Official Receiver with his duties as liquidator.
Change of company names in the liquidation
Following the sale of British Steel to Jingye, ‘British Steel Limited – in Compulsory Liquidation’ is now known as ‘SLB 2020 Limited – In Compulsory Liquidation’
Information for employees
Following the sale of British Steel to Jingye, the employment contracts of British Steel employees have been terminated. Jingye have engaged with British Steel employees and their representatives regarding new employment contracts.
The information in this section provides advice about claiming money you’re owed and where you can seek support.
Who is eligible?
You can apply to the Insolvency Service for redundancy and other payments if:
- you worked for British Steel Limited under an employment contract
- you live in England, Scotland or Wales
All redundant British Steel employees can apply to RPS for money you are owed, even if you are now employed by Jingye.
You can’t apply to the Insolvency Service if you live in Northern Ireland. Find out about your rights in Northern Ireland if your employer is insolvent.
How to apply
The Special Managers will give you details about how to apply and will also give you a case reference number (for example CN12345678).
Once you have this information you can apply online.
What you can apply for
What you can apply for depends on your circumstances. The Insolvency Service can pay:
- redundancy pay: if you’ve worked for British Steel Limited for at least 2 years
- pro rata holiday pay (known as ‘holiday pay accrued’): the leave you were entitled to take between the start of your leave year and the date you were made redundant
There are caps on what we can pay you for each type of claim. Find out how much we can pay you.
Paying your claim
On average the Insolvency Service’s redundancy payments service pays redundancy and related claims within 14 days of receipt of information.
Find more information about what we can pay.
Please don’t contact us about how to claim or to check the status of your application. This will help us deal with everyone’s application as quickly as possible.
An employee helpline has been established to answer any questions you may have. You can contact the Special Managers by email or you can phone 0161 333 2666.
Getting help
Redundancy: help finding work and claiming benefits.
Information for suppliers
You will need to register as a creditor in the liquidation if:
- you haven’t been paid for goods or services you’ve supplied to British Steel in liquidation
- you have paid British Steel in liquidation for goods or services that you haven’t received
- you are a worker or self-employed contractor who provided services to British Steel in liquidation
To register as a creditor you will need to complete a Proof of Debt form which you should then email to the Special Managers.
Once you have registered and the Special Manager receives your Proof of Debt form they will add you to the list of creditors and include you on future correspondence about the case.
Advice is available for businesses who face challenges arising from British Steel’s liquidation.
Sale of TSP Projects Limited
On 30 August 2019 the Official Receiver announced that TSP Projects Ltd (TSPP), a wholly owned subsidiary of British Steel Ltd (In Compulsory Liquidation), has been sold to SYSTRA Ltd.
Based in York, TSPP provides consultancy, design, engineering and on-site project management services. The sale of TSPP’s shares to SYSTRA Ltd – the UK subsidiary of French-based SYSTRA Group – will expand SYSTRA’s footprint in the UK and preserve over 400 jobs at TSPP. This transaction is a solvent sale and TSPP is not in any insolvency proceedings and remains liable to continue to support its pension scheme.
Other enquiries
If you have a general enquiry about British Steel you can email the Special Managers.
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