Chinese buyer of British Steel looks to grow abroad

Chinese buyer of British Steel looks to grow abroad

Jingye Group’s purchase of British Steel Ltd. gives the privately owned Chinese steelmaker a chance to grow outside a home market dominated by giant state-owned mills.

The deal adds to a string of global acquisitions by Chinese companies that want to speed their growth in industries from computers to cars to chemicals by obtaining technology, brands and sales networks.

Jingye is part of a sprawling Chinese industry that produces half the world’s steel. It’s regarded as technologically advanced but ranks 17th among China’s producers with 2018 output of 11 million tons.

The British deal could allow Jingye to sell to European markets without adding to trade strains by increasing imports from China.

The price of 70 million pounds ($90 million) is modest compared with China’s most ambitious acquisitions.