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2w ago

UK Government Explores Nationalisation to Rescue British Steel's Scunthorpe Plant

Negotiations with Chinese owner Jingye intensify as the Scunthorpe facility faces imminent closure due to raw material shortages and financial losses.

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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Scunthorpe steel works is home to the UK’s last operational blast furnaces, which could shut within weeks

Overview

  • The UK government is actively considering nationalisation as a potential solution to save the Scunthorpe plant, the country's last producer of virgin steel via blast furnaces.
  • Jingye, the Chinese owner of British Steel, rejected a £500 million government support offer, demanding nearly £1 billion instead, and canceled raw material orders crucial for operations.
  • The Scunthorpe plant risks shutting down within weeks, with unions warning that restarting blast furnaces after closure would be prohibitively expensive.
  • Key political figures remain divided, with Labour leaders emphasizing strategic importance and resilience, while Conservatives advocate for a commercial solution to reduce taxpayer burden.
  • A potential deal to preserve operations is reportedly within sight, as the government continues urgent discussions with Jingye and explores options to secure the plant's future.