British Steel is taking emergency measures to save its blast furnaces at Scunthorpe, as the government refused to guarantee support for the plant’s operations. The company has received offers of help from more than a dozen businesses to obtain essential materials, such as iron ore and coking coal.
On Saturday, parliament passed an emergency bill granting control over the Scunthorpe site, following the Chinese owner Jingye’s refusal to provide raw materials or guarantee the plant’s continuation. British Steel’s management team is scrambling to acquire necessary materials, with assistance from government officials.
Business Secretary Jonathan Reynolds declined to directly accuse Jingye of sabotage but stated that the decision not to order raw materials and sell existing supplies may be a “conscious choice.” The government has set a “high trust bar” for Chinese companies investing in critical UK industries, and Reynolds warned that any future investments would require close scrutiny.
Reynolds emphasized the potential economic costs of closing the plant and losing steelmaking capacity, which could exceed £1 billion. A decision on full nationalization is expected to be made within the next fortnight if the plant can continue operating. The government has allocated a steel fund of over £2.5 billion for short-term support.
The company’s annual losses are £233 million, and Reynolds noted that nationalization would not require additional borrowing. However, Farage accused Jingye of lying about its accounts and claimed the Chinese government ordered the purchase of British Steel to close the business, citing his “intuition.”
Source: https://www.theguardian.com/business/2025/apr/13/no-guarantee-british-steel-plant-will-be-able-to-continue-says-business-secretary