UK Government Takes Control of British Steel to Prevent Shutdown
Emergency legislation grants the UK government operational control of the Scunthorpe plant after failed negotiations with Chinese owner Jingye, with nationalisation likely.
- Parliament passed emergency legislation on April 12, 2025, allowing the government to take operational control of British Steel’s Scunthorpe plant to prevent its closure.
- The move follows the breakdown of negotiations with Jingye, the plant's Chinese owner, which cited unsustainable financial losses of £700,000 per day.
- The law empowers the government to direct the plant’s operations, including workforce management and raw material procurement, with criminal penalties for non-compliance.
- Nationalisation is increasingly seen as the likely outcome, as no private investors have shown interest in taking over the plant.
- Closure of the Scunthorpe site would leave the UK as the only G7 country unable to produce virgin steel, raising concerns about national infrastructure and industrial capacity.
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