[Ferro-Alloys.com] Chinese industrial giant Jingye Group has agreed to buy bankrupt British Steel for an undisclosed amount, the official receiver said Monday in a rescue deal that saves thousands of jobs.

Jingye added separately that it would invest 1.2 billion pounds (USD 1.5 billion, 1.4 billion euros) over the next decade to place the business, which collapsed in May, on a competitive and sustainable footing.

A source had already confirmed that a deal was in the works earlier on Monday, amid press reports that Jingye would pay 70 million.

Jingye will purchase British Steel's sprawling steelworks at Scunthorpe, northern England, as well as its other UK mills.

The deal also includes the company's stakes in Dutch steelmaker FN Steel, British Steel France, and specialist UK manufacturer TSP Engineering.

Jingye added that the deal will save "thousands of jobs" in Britain, as the pair will together form a global giant.

Jingye plans to invest 1.2 billion pounds over the next ten years in upgrading the plants and machinery, improving environmental performance and boosting energy efficiency, as it seeks to ensure the group's "long-term sustainable future".

The business will continue to trade as normal until completion, which is conditional on a regulatory approvals.

China's Hebei-based Jingye Group specialises in iron and steel, but has investments in tourism, hotels and real estate. According to its website, it has total assets of 39 billion yuan ($5.5 billion) and 23,500 employees. (The Economic Times)

• [Editor:kangmingfei]