Jingye plans to add rebar to British Steel

Following the acquisition of British Steel, China's Jingye Steel has outlined plans to invest in its new offshoot. Among other things, he intends to represent the production of valves in the British Steel portfolio.

Jingye says she has pledged to invest £ 1.2bn ($ 1.55bn) "... to make the business more competitive and sustainable." British Steel is slated to return to industry-comparable margins within five years, the Chinese steelmaker adds.

The plan lists five major initiatives he plans to roll out for the Scunthorpe steel mill. The two most interesting of these are the development of an electric arc furnace at Teesside and the construction of a new rebar line. The first would bring smelting back to the northeast of England, while the second would provide competition for the only British rebar manufacturer, Cardiff-based Celsa.

Jingye also plans to build a new 250 megawatt power plant to service the Scunthorpe site. The new plant is expected to be about a third more efficient than the one it will replace. The Chinese steelmaker is also investing in high-quality steel rolling mills to optimize its product portfolio. It will also improve the existing rail (middle section) mill, Jingye confirms.

“It has not been an easy decision since we first announced our intentions in November, but the longer I have spent in Scunthorpe, the more I begin to believe in the successful future of these smelters and the people who have made them known around the world. “Together we can forge a new partnership that will usher in a glorious new chapter in the history of British steel making,” says Jingye CEO Li Huimin.