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2w ago

UK

Legislation passed in Parliament allows the government to take control of British Steel's operations to prevent closure of the UK's last virgin steel facility.

British Steel’s Scunthorpe plant, in northeast England
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Scunthorpe steelworks is home to the UK’s last operational blast furnaces
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Overview

  • Parliament was recalled for a rare Saturday session to pass the Steel Industry (Special Measures) Bill, granting the government authority to direct British Steel's Scunthorpe plant operations.
  • The emergency law enables the government to order raw materials, direct the company's board and workforce, and impose criminal sanctions on non-compliant executives.
  • Negotiations with Chinese owner Jingye broke down after the company rejected a £500 million government offer and ceased purchasing essential raw materials.
  • The legislation stops short of full nationalisation but positions public ownership as a likely outcome, with no private investors currently willing to step in.
  • The Scunthorpe plant is critical to the UK's infrastructure and defense, as its closure would leave the country unable to produce virgin steel domestically.