Jingye Group Eyes on Liberty Steel’s Troubled UK Steel Plants

SEATTLE (Scrap Monster): The Chinese Jingye Group has reportedly informed the UK government of its willingness to take possession of a few of the troubled assets of Liberty Steel, if the Sanjeev Gupta-owned steel conglomerate fails to find fresh financing. However, this has put the UK administration in a dilemma, especially at a time when the bilateral relations between the UK and China have been worsening, following alleged human rights violations by the Chinese administration in Hong Kong.

According to sources, Jingye Group intends to set up a business empire in the UK. The acquisition of assets of British Steel in 2019 was an early step in its journey to that objective. The talks with the UK government are at an exploratory stage. Meantime, British Steel declined to comment on commercial inquiries of any sort.

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The investigation by the Serious Fraud Office on Gupta’s assets on charges of suspected fraud and money laundering is likely to make fresh financing even more difficult. The Group has been struggling for financing since the collapse of Greensill Capital-its main lender in March this year. However, the GFG Alliance announced that it is making progress in financing activities and that the UK plants will not close at any cost.