Particle.news
Download on the App Store
14 ARTICLES
·
last wk.

UK Government Secures British Steel Scunthorpe Plant Amid Nationalisation Plans

Emergency legislation has granted the UK control of its last virgin steel producer, with raw materials secured to sustain operations as debates over foreign investment and the plant's future intensify.

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.
Image
UK Secretary of State for Business and Trade Jonathan Reynolds tells parliament on Saturday that "exceptional circumstances" require "exceptional action."

Overview

  • Parliament passed emergency legislation allowing the UK government to take control of British Steel's Scunthorpe plant after Chinese owner Jingye halted raw material orders.
  • Raw materials from the US, Australia, and Sweden have been secured and delivered to keep the blast furnaces operational, preventing costly and irreversible shutdowns.
  • Business Secretary Jonathan Reynolds indicated that full nationalisation of British Steel is likely, with plans to seek a private sector partner for long-term transformation.
  • The move has reignited discussions about Chinese investment in strategic industries, with officials emphasizing tighter scrutiny for future bids involving sensitive sectors like steel.
  • The decision highlights broader concerns about safeguarding critical industries, job security, and the challenges of modernizing aging infrastructure while maintaining domestic production.