HUNDREDS of Teesside jobs have been secured after the Jingye Group signed a deal to buy British Steel.

The deal was first announced last November and today Jingye formally completed the acquisition of British Steel’s UK and Netherlands assets from the Official Receiver.

The assets included in the transaction include British Steel’s operations at Teesside Beam Mill and Skinningrove.

Jingye has pledged to invest £1.2 billion into the company, with initiatives including the development of an Electric Arc Furnace in Teesside set to guarantee around 800 jobs in the Tees Valley.

However, it is understood that around 70 Teesside workers will lose their jobs.

Nationally, the acquisition is set to safeguard around 3,200 jobs and follows the agreement of new terms with customers and suppliers.

The Northern Echo:

Jingye Group CEO, Li Huiming, said: “It has not been an easy journey since we first announced our intentions in November but the longer I have spent in Scunthorpe, the more I have come to believe in the successful future of these steelworks and the employees that have made them famous throughout the world.

“Together, we can forge a new partnership that will mark the beginning of a new illustrious chapter in the history of British steelmaking.”

British Steel CEO, Ron Deelen, said: “This is a momentous day for our business, and I’d like to thank everyone for their dedication during a challenging year.

“I’m confident we’ll seize the incredible opportunity Jingye have given us to build on 150-years of heritage, and further cement British Steel’s reputation as a manufacturer of world class steel.”

Tees Valley Mayor Ben Houchen said the sign-off marked ‘a fantastic day for Teesside’.

He added: “Having worked flat out for nearly a year to secure a deal for British Steel I am pleased this day has finally come.

The Northern Echo:

“Thanks to Jingye we have been able to save hundreds of Teesside jobs.

“It must have been a horrible time for workers who have carried on working so incredibly hard and professionally during all the uncertainty, and I want to thank them for their help in getting this deal over the line, along with the Government and trade unions.

“For the 70 employees affected by redundancy we have put in place direct support for them via the Grangetown Hub.

“So while today is good news there are some Teesside families who will be badly affected.

“The future of British Steel now looks very positive.

“And because we have struck a deal with SSI to take control of the former Redcar steelworks, we can now move forward with my plans to bring steelmaking back to Teesside with a state-of-the-art electric arc furnace.

“This will be delivered within three years and we will provide good quality, well-paid jobs for local people when steelmaking returns to Teesside.

“This is just the beginning. We have the building blocks in place and we are making great progress in Teesside, Darlington and Hartlepool.”

The GMB Union said the deal is a big win for the industry – but heartbreaking for those losing their jobs. Charlotte Childs, GMB organiser, said: “On the one hand this deal must be celebrated; it keeps the steel industry alive in the UK, it safeguards more than 3,000 jobs and offers a bright future - providing Jingye stick to their plan.

“On the other it is heartbreaking that long-serving members of high-skilled staff, many of whom have given their entire career to British steel, are seen as surplus to requirements. “This deal is worth pursuing to safeguard UK steel for future generations.

“But, for the UK’s steel industry to have a long term future, we still need more Government assistance on energy costs to compete with European competitors, as well as domestic procurement orders.”