Metal Price
Scrap Monster
Vulcan
Steel News December 06, 2019 03:30:41 PM

British Steel Puts French Hayange Plant Up For Sale

Paul Ploumis
ScrapMonster Author
The deal covered all assets including the Hayange plant.
British Steel Puts French Hayange Plant Up For Sale

SEATTLE (Scrap Monster): British Steel’s French factory has been put up for sale, amidst deal by Chinese Jingye Group to purchase all of the assets of the steelmaker. The Hayange mill plant in northern France has now been advertised for sale in The Financial Times and a local French newspaper.

British Steel had reached an agreement with Jingye Group last month, by which the latter had agreed to pay approximately £50m for all of the steelmaking assets of the former. The deal covered all assets including the Hayange plant.

According to sources, the decision to look out for a possible buyer for the French plant would probably had initiated from the plant’s management itself, as a contingency plan, in case the Jingye deal fails to go through.

ALSO READ: British Steel to Sign Major Rescue Deal with Chinese Industrial Group

Meantime, the GMB union expressed deep concerns at the new development. It has decided to seek assurance from the Chinese buyer group on keeping the entire British Steel business complete.

Jingye Group, whose request to approve their investment is pending before the French government, also criticized the latest development. The company executives are already in touch with French ministry officials, sources said. Ultimately, French government is supposed to make the decision as to grant or reject approval for change of ownership of the plant to the Chinese firm.

The Hayange plant is considered as a strategic asset. It makes steel for the French rail network, including railways, subways and tramways.