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2w ago

UK Considers Nationalising British Steel to Prevent Scunthorpe Plant Closure

The government is weighing nationalisation as a last resort to safeguard jobs and maintain the strategic steel industry, with discussions intensifying after Jingye Group rejected financial support proposals.

image: ©CHUNYIP WONG | iStock
FILE - People walk their dogs on the beach, with the backdrop of the Redcar steel plant in the background, in Hartlepool, England, Nov. 12, 2019. (AP Photo/Frank Augstein, File)
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Overview

  • The UK government is actively considering nationalising British Steel to avert the closure of its Scunthorpe plant, which employs 3,500 workers and produces most of the UK's rail track steel.
  • Nationalisation is being treated as a last resort, with Prime Minister Keir Starmer and other officials emphasizing the strategic importance of domestic steel production for national resilience and economic security.
  • The Chinese-owned Jingye Group, which purchased British Steel in 2020, has rejected a £500 million bailout offer, citing annual losses of £250 million despite significant investments in modernisation.
  • Government officials and union leaders are engaged in urgent talks, with Business Secretary Jonathan Reynolds set to meet British Steel executives to explore solutions to the crisis.
  • The Scunthorpe plant's potential closure highlights broader industry challenges, including high energy costs, global competition, and the transition to greener steelmaking technologies.