The Chinese firm that previously owned British Steel sought on Sunday compensation from the U.K. government for investment losses it said it incurred following the nationalization of the key manufacturer last week.
The British government took operational control of the company last year after Jingye Group said that it was considering closing the blast furnaces at its Scunthorpe plant in northern England, the last in the U.K. to make "virgin steel" from raw materials.
Jingye Group said in a WeChat statement that the nationalization move tarnished the credibility of the British government, spooked international investors and caused great losses to the company’s operation and British taxpayers' funds. It also demanded that the U.K. government stop "trampling on international investment rules."
The Chinese company announced it had initiated negotiation procedures under relevant bilateral investment agreements, reserving all rights, including to international arbitration. Jingye said it will also represent British taxpayers seeking to hold the U.K. government and British Steel’s management legally liable. However, it did not specify how it would handle the case.
"The U.K. disregarded Jingye's continuous investment and significant contribution and was only willing to provide almost zero compensation," it said.
