British Steel's owners Jingye Group 'lack confidence of workforce' says MP

SCUNTHORPE'S MP Sir Nic Dakin has said British Steel's owners, Jingye Group, lack the confidence of its workforce, suppliers and customers.

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Sir Nic said this made it probably “very difficult" for them to remain involved in the company. The Scunthorpe MP made the remarks in an extensive interview with Scunthorpe Live, reflecting on the current state of play with the steelworks. The Government took operational control, but not ownership of, British Steel earlier this month as concern about a lack of new raw materials being ordered for the blast furnaces mounted.

Sir Nic also expressed a preference towards public ownership in the interim to resolve the current situation, where Jingye own the steelworks, but the Government directs it. He described this arrangement as “precarious” and in the interest of both Jingye and the Government to resolve.

Sir Nic was asked if he thought Jingye had a future in the steelworks going forward, and whether a part Government stake was the way to go in the future. The Government has expressed a preference for British Steel to remain commercially led.

“Unfortunately, I think the workforce has lost confidence in Jingye,” he said. He felt the Chinese owners had acted in good faith up to the end of last year, “although sometimes erratically”.

“In reality, we have to recognise that they have run the business for a number of years and ok, it's been a bit of a bumpy ride, but within that time, they have got some things right as well as some things less right.

However, I think where we are now, there's a lack of confidence from the workforce, suppliers, and customers in Jingye, as well as Government.