Tees Business Tees Business Issue 21 | Page 13

N E WS Visit - Jingye Group chairmam Li Ganpo on a visit to Teesside. A Chinese takeover set to save steel jobs deal to rescue British Steel will save around 3,200 UK jobs including hundreds on Teesside. Under the terms of the sale, the Chinese Jingye Group will take over the running of British Steel’s Teesside Beam Mill, near Redcar, and a special profiles factory in Skinningrove, east Cleveland. Jingye bosses say the deal will unlock a £1.2bn modernisation investment. The deal comes after British Steel – founded when Tata Steel sold its Long Products division to investor Greybull Capital – collapsed into compulsory liquidation last year. Jingye Group chairman Li Ganpo was pictured on Teesside last November after Jingye said it had exchanged contracts and reached an agreement to acquire certain assets of British Steel. Greybull Capital had paid Indian company Tata a nominal £1 for its Long Products division. After setting out ambitious targets for its future and securing a number of high-profile contracts, the company collapsed into liquidation last year, with a government- appointed official receiver overseeing operations ever since. A steelmaking subsidiary of the Turkish military pension fund, Ataer Holdings, had been favourite to acquire the business before talks ended in October. Responding to the news that the purchase of British Steel by Jingye had been completed, Northern Powerhouse minister and MP for Middlesbrough South and East Cleveland Simon Clarke, said: “This is hugely important news for our area. British Steel is an anchor employer in East Cleveland and represents a national asset.” Tees Valley mayor Ben Houchen said: “We’ve been working flat out with Jingye for almost a year now and I am confident that this deal will secure many hundreds of jobs on Teesside. “It is important to thank everyone who has been involved in getting this deal over the line, including all the workers at British Steel who have had to work through the uncertainty, the government and the trade unions. It shows what can be done when we work together with the best interests of our region at the heart. “This is just the start for the return of steel on Teesside.” £22M WINDFALL FOR STEEL SECTOR T he Materials Processing Institute has been awarded £22m by chancellor Rishi Sunak to deliver a five-year research and innovation programme to revolutionise the steel and metals sector. Acknowledged by the government as the UK’s innovation centre for steel and metals, the Teesside-based institute will focus on increasing productivity and transforming environmental sustainability. Projects include: > Carrying out research and innovation into low carbon, electric and hydrogen based steelmaking, scrap recycling and new processes to allow UK steel to transition to a sustainable, green industry. > The development and commercialisation of technologies in SME supply chains, such as robotics and artificial intelligence, to increase productivity and product capability. > Develop new technologies for the extraction and recycling of rare metals, such as lithium and cobalt, in the UK – to support a sustainable, secure and ethical supply chain. In addition, the programme will provide particular support to the South Tees Development Corporation and the Tees Valley local industrial strategy. The institute, a not-for-profit organisation, has worked with global steel and materials industries, including Tata Steel, British Steel and Liberty Steel, to deliver cutting edge research and innovation in advanced materials, low carbon energy, the circular economy and digital technologies. Digital skills vital for future T he North-East’s digital sector is booming – and, prior to the Covid-19 outbreak, this year it was estimated to become a £2.5bn industry. Despite a thriving tech scene, the number of people studying computing or a digital-related subjects at school is falling sharply at about 20 per cent per year – while jobs in that sector here in Tees Valley are increasing at about 10 per cent per year. That’s why we’re on a mission to turn that decline around. Our students are building digital skills that will help transform the Tees Valley. We’re calling on local authorities and businesses to help shine a light on the sector and encourage young people to consider a career in digital. Digital is going to be the key sector in years to come. As digitisation takes over, employers will require digital skills. Our students are already carving an exciting career in the tech industry through placements and apprenticeships with leading employers. But it’s not just about training young people – it’s also about them getting into work and securing high-quality jobs. The Government recently endorsed our success in this area with the announcement that we will be the only college in the area approved to run new T Level qualifications in digital which allows students to gain industry experience for two days per week alongside their Level 3 course. We’re already working with employers to provide extended T Levels industry placements which give students the opportunity to put into practice what they’re learning in the classroom, while developing technical skills that businesses want. Zoe Lewis, principal and chief executive, Middlesbrough College The voice of business in the Tees region | 13