Tuesday, 12 November 2019

Chinese firm buys British Steel

Well, well ... / We've got some expert comment. 'Yippee!' Don't get too excited, Voice. 'Why not, boss?' Because it's no big deal. This is Brexit Land. We don't want experts. We don't need them.

As British Steel looks set to announce it has been rescued by Chinese firm Jingye, a move which could secure 4,000 jobs directly and thousands more in the supply chain, Dr Jonathan Owens, logistics expert from the University of Salford Business School, comments.

Okay, okay. Listen! It's great that all these people are keeping their jobs, BUT(!) ... it seems that everything is up for sale now. I mean, we're getting "control". 'Yippee!' We're getting "sovereignty". 'Yippee!' But EVERYTHING is being sold - !!! 'Oh.' Yeah. However, the good news is ... I'm not bothered at all. 'Why not, boss?' Ha! Because I live for myself these days, man. I live only for myself. 'Great!' So, I won't be discussing Brexit. 'Yippee!' I won't be discussing the general election. 'Yippee!' And I won't care about anything outside of me. 'Oh.' Ha! It ain't that bad, son.

Anyway, let's hear from Jonathan ...

Dr Owens says: "It appears the Chinese based Jingye Group may have beaten the Turkish pension fund in the purchase of British Steel. Overnight, the Chinese industrial giant has agreed in principle a deal worth £70m, which needs to be ratified by the UK government, but this could be expedited and could be completed within a week. If successful this will secure 4,000 jobs at the Scunthorpe plant and up to 20,000 within the wider supply chain, bringing a huge relief to thousands of families in the traditional run up to the festive season."


"It is not perhaps surprising that both the Jingye group and the Turkish pension fund were committed on investment at Scunthorpe, by utilizing the high-quality steel that is manufactured at Scunthorpe to complement their existing specialisms and concentrations within the volume market. Assuming there are no unforeseen problems with purchase, it will be interesting to understand what Jingye's medium and long term recovery plans are for the plant. One strategic viewpoint could be to develop capacity for subsidized raw material into the UK market, which may be likely in the long-term not to be subject to high EU tariffs, and it can get enhanced leverage in the UK economy too."

I'll be honest: I'm just amazed that we have any manufacturing left in this country. Surely, the future is Amazon warehouses, and call centres, and phone shops, and charity shops ... ?

"This investment should not be short term and seen as a benchmarking and knowledge stripping exercise though. Scunthorpe was initially the first to develop and apply technology that allows production of high grade steel with better reliability. In the past it has successfully fended of cheaper imports from China. Whilst other steel mills around the world have applied similar technologies, Scunthorpe is still considered 'world class' and the most experienced plant utilizing this technology, and it still supplies Network rail for the UK's railway track infrastructure today."

By the way, uh ... I've had to correct a couple of spelling mistakes in this PR email from The University of Salford. 'Ha! What's your problem, boss?! Everyone makes mistakes.' Yeah, yeah. I didn't go to university, man. / I'm just saying, like, dear reader(s). Do you know what I mean?

[And I'm not talking about changing some Ss to Zs. I just do that because I prefer the Zs.]

Anyway ...



Anything else, kook(s)? Personal stuff? Music? This is a finance blog. Are you crazy?!

So, what else? Oh, man! I love this new Gillette advert! They're going to sell so many razors. They won't be able to make them fast enough.