The sale to Jingye Steel (UK) Ltd and Jingye Steel (UK) Holding Ltd includes the steelworks at Scunthorpe; UK mills in Teesside and Skinningrove; shares of FN Steel BV; and the TSP Engineering business based in Cumbria. It also saves the majority of 4,000 jobs at risk in the aftermath of the manufacturer’s compulsory liquidation last year.

Discussions continue to resolve the regulatory approvals required to sell British Steel’s French subsidiary, based in Hayange, to Jingye.

Sam Woodward, special manager, partner at EY, said: ‘Maintaining the business in challenging market conditions whilst the right deal was secured, is testament to the commitment of British Steel’s employees, customers, suppliers and the trade unions.

‘Without it, the most likely outcome would have been the closure of the business, the loss of its rich heritage and significant impact on British Steel’s supply-chain.

‘Jingye has shown a great desire to effect ambitious plans that will invest in British Steel and help the business to once again be competitive on the world map.’ 

The sale of British Steel will secure approximately 3200 jobs, but around 440 employees have not received offers of employment in the new company.

The Official Receiver, David Chapman - appointed by the High Court in May 2019 as liquidator along with special managers at EY to assist - said: ‘The sale of British Steel is the culmination of nine months of work to transition this business to a new owner committed to its future.

‘I am grateful to the British Steel workforce for their professionalism during difficult times as the business continued to trade and to its customers who have continued to show their confidence in the products the company produces. This show of commitment was an essential element in concluding the sale.’

As part of the deal, Jingye Group has pledged to invest £1.2bn over 10 years to modernise British Steel sites and boost energy efficiency.

Business Secretary Alok Sharma said: ‘The sale of British Steel represents an important vote of confidence in the UK’s steel industry. It also marks the start of a new era for those regions that have built their livelihoods around industrial steel production.

‘I would like to pay tribute to everyone who has been involved in getting this deal over the line, in particular to British Steel’s workforce for whom I recognise the uncertainty will have been challenging.

‘I also want to reassure British Steel employees who may be facing redundancy that we are mobilising all available resources to give immediate on the ground support and advice to those affected.’