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3w ago

UK Government Moves Toward Nationalising British Steel After Emergency Takeover

Ministers secure raw materials to keep Scunthorpe blast furnaces operational while exploring future ownership options amid strained relations with China.

SCUNTHORPE, ENGLAND - SEPTEMBER 13: An aerial view of the British Steel Scunthorpe site on September 13, 2024 in Scunthorpe, England. A plan to transition from blast furnaces to less pollutive - and less labour-intensive - electric arc furnaces has stoked worries over job losses at the plant. This week, Business Secretary Jonathan Reynolds said his government's options for supporting the plan in this transition were more limited than for Port Talbot Steelworks in South Wales, blaming the previous Conservative government for a lack of planning. (Photo by Christopher Furlong/Getty Images)
Then-UK Prime Minister David Cameron drinks a pint of beer with Xi Jinping at a Buckinghamshire pub in 2015.
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UK Secretary of State for Business and Trade Jonathan Reynolds tells parliament on Saturday that "exceptional circumstances" require "exceptional action."

Overview

  • The UK government has taken operational control of British Steel’s Scunthorpe plant, with Business Secretary Jonathan Reynolds stating full nationalisation is now the likely outcome.
  • Emergency legislation was passed after Chinese-owned Jingye Group halted raw material orders, threatening to shut down the UK’s last virgin-steel blast furnaces.
  • Shipments of critical raw materials, including coking coal and iron ore, have arrived at Immingham Port, ensuring furnace operations for the coming weeks.
  • The diplomatic row with China has escalated, with Beijing accusing UK politicians of ‘arrogance’ and warning of potential damage to economic cooperation.
  • Ministers are assessing private-sector ownership options under stricter security criteria, though no immediate private buyers have been identified.