The United Kingdom begins to search for the buyer of British steel

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UK officials and industry experts have begun to work on an “investment issue” to attract a buyer of British Steel, after the government intervened significantly to control the company.

The ministers are concerned that there is no “end point” now Control of the Chinese steel makerAccording to two people familiar with this situation.

One of the people said: “The difficulty now is that there is no end point unless we find a third party.”

While the focus was on finding a private sector investor at British Steel, there was also a need to “work on the side of the long -term demand and (be able to submit) a sustainable work case,” the person added.

The procedures for energy costs, which have been a long challenge for the steel industry as producers pay more than electricity than competitors in France and Germany, is seen as an integral part of this, according to the people.

The work is carried out in conjunction with the steel council, which the government launched at the beginning of the year to advise how to rebuild the industry.

A spokesman for the Business and Trade Administration said:

“We are working closely with Jingye and a group of third parties in options for the future, and we will continue to work to determine the best long -term sustainable future for the site.”

Business Secretary Jonathan Reynolds is looking for new participants in the United Kingdom for several months, even before The crisis escalated In British steel.

The United States is now seen as one clear option given the number of steel companies there, and the previous interest that some have shown in obtaining a fingerprint in the UK. The ministers have previously described American steel groups as among the “best in chapter” thanks to their advanced technology.

Officials have warned that it is likely to take a long time to find a buyer Steel, but they stressed that working on this started.

Reynolds raised the summons of Parliament on Saturday to pass the emergency legislation to allow the government to control British steel after talks with Jenny, her Chinese father, due to the support of the taxpayer to invest in green technologies.

The government has placed 2.5 billion pounds as part of the Green Steel Fund to invest in this industry In decline for decades. One of the industry experts said that there is recognition of the ministers that any investment offer should include government support.

Reynolds offered 500 million pounds to Jingye to help her restructure her operations and invest in two less carbon -intensity electric arc furnaces.

An industry banker said that despite the current non -competitive electricity prices for the sector, reliable offers may appear if the UK can conclude a trade deal with the United States on the import tariff. He said that the American players, including NUCOR, are pioneering in the use of electric arc furnaces, while European investors may take a look.

The banker said: “What do you not like?