The Chinese Jingye Group today signs on the dotted line to complete its takeover of British Steel. It is alleged that the company offered £50 million for the almost doomed British steelmaker and in the process save some 3,000 jobs at plants in Scunthorpe and Teesside.

Job losses of up to 500 people might still be a reality, but there are plans to spend £1.2 billion over the next 10 years on plant and machinery upgrading.

According to a BBC report, Jingye's chief executive has described the deal as a 'new chapter in British steelmaking'.

Speaking prior to today's announcement, Jay Hambro, chief investment officer, GFG Alliance, commented: “We sincerely wish for the best outcome for British Steel’s 4,000 workers and their families.

"As a major British-owned global metals producer, Liberty submitted its own plan for a homegrown rescue of this important part of Britain’s steel industry. We are disappointed that this did not proceed but nevertheless welcome the Government’s intervention over the last 12 months to prevent the Scunthorpe steelworks from closing.

"As the eighth largest steel producer outside China, we are committed to working alongside the UK government and our supply chain partners to deliver a sustainable future. It is essential that, as a nation, we avoid any more UK steel plants finding themselves in the same position as Scunthorpe.

"The Budget on Wednesday represents a genuine opportunity for the new government to address the unique challenges facing UK steel makers, such as our uncompetitively high electricity prices for industrial users. We urge the Government demonstrate its commitment to our industry’s long term future by prioritising procurement of UK manufactured steel for major infrastructure projects, such as HS2.”