French authorities are considering seeking assurances from Chinese conglomerate Jingye that it will guarantee supply to a factory in north-east France as a condition for its approval of the group’s takeover of British Steel.
The authorities have indicated to the Chinese company that they will require at least two sources of supply from British Steel for the steel used to make specialised high-speed rails for France’s TGV network.
The condition — which is one of a number the French are discussing — reflects concerns over the stability of British Steel, which has had three owners in a decade, and about Jingye’s ability to guarantee supply.
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