Troubled manufacturer British Steel looks like its has been given a reprieve thanks to a deal with Chinese firm Jingye.

Unions have welcomed the expected announcement, which could save as many as 4,000 jobs.

A spokesman for the Community trade union said: "If this is confirmed, then we welcome this positive step towards securing British Steel under new ownership.

"The fact that there has been ongoing interest from both Ataer and now Jingye, rightly demonstrates that potential buyers believe that British Steel can have a sustainable future.

"Any new owner would not just be acquiring a steel business, they would be taking on a dedicated and skilled workforce, who even through the uncertainty of recent months have been breaking production records to give the business a chance.

"In the meantime, everyone needs to remain focused on securing a viable deal to save our steel."

Staff at the Scunthorpe plant have already been told in an email that contracts between British Steel and Jingye have been exchanged, according to the BBC and the Guardian.

An official announcement is expected at some point after 1pm today.

Jingye is also set to sweeten the offer with the promise it can also access up to £300 million in loans, indemnities and grants to back its plan to boost production at the plant by 10%.

The GMB union, who met a senior team of Jingye officials in Scunthorpe on October 30, said they were treating the proposed sale with "cautious optimism".

GMB national officer Ross Murdoch said: "We were impressed with the passion and enthusiasm from the Jingye team. However due diligence on this sale was completed very quickly and the devil will be in the detail.

"As such we will seek an urgent meeting with the Jingye group to discuss their precise strategy.

"GMB's position is, the new owner takes on the whole workforce on existing terms."

Ataer is said to have fallen to third place in the bidding, also behind steel baron Sanjeev Gupta, who owns the UK-based Liberty House group.

Nic Dakin, the Labour candidate for Scunthorpe, said: "The workforce at British Steel have done an outstanding job continuing to make and sell steel through these difficult few months.

"It looks as if we're coming to a point where a new owner may well be determined and that would be very good news for the business and the communities that are around it."

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