Overview

• The British Parliament enacted an emergency law on April 12, 2025, granting the government control of the Scunthorpe steelworks to avert its closure by Chinese owners.
• The Scunthorpe plant, operated by British Steel and owned by China's Jingye Group, has been incurring daily losses of £700,000, leading to its financial struggles.
• The legislation aims to protect 3,500 jobs and preserve the UK's last facility capable of producing primary steel, critical for industries like construction and shipbuilding.
• Government officials, including Jonathan Reynolds, emphasized that all options, including potential nationalization, remain open to ensure long-term viability.
• The broader European steel industry faces challenges such as high energy costs, US tariffs, and competition from low-cost Asian suppliers, exacerbating the crisis.