The UK government has regained control of Britain’s last remaining factory that produces steel from scratch after lawmakers approved an emergency rescue bill. The move comes as Prime Minister Keir Starmer backed a bill to block British Steel’s Chinese owners, Jingye Group, from closing the two massive blast furnaces at its Scunthorpe plant in northern England.
The bill gives Business Secretary Jonathan Reynolds the power to direct the company’s board and workforce, ensure 3,000 workers receive pay, and order raw materials necessary to keep the blast furnaces running. The Scunthorpe plant is facing significant losses due to market conditions and increased environmental costs, with the recent US tariffs on imported steel also affecting it.
After a voice vote in the House of Commons, Starmer arrived in Scunthorpe to meet workers, who were relieved that their jobs had been preserved. The town’s steelmaking heritage, dating back 150 years, has been safeguarded. Starmer thanked the workers for their contributions and expressed his commitment to preserving their livelihoods.
The UK is now at risk of losing its domestic steel production capabilities if the blast furnaces are not kept running. This would have significant implications for industries such as construction, defense, and rail, making the country reliant on foreign sources for virgin steel. Lawmakers from all parties agree that this would be unacceptable, and the government’s intervention is a crucial step in preventing this outcome.
The new laws do not transfer ownership of the plant to the state but could pave the way for it in the future. Jingye Group, which has owned British Steel since 2020, will face legal sanctions if it fails to abide by the new regulations. The company’s role in day-to-day operations is unclear, but its executives are at risk of facing consequences should they not comply with the law.
Source: https://edition.cnn.com/2025/04/12/europe/uk-takeover-british-steel-chinese-jingye-intl-latam/index.html