The UK government has stepped in to take control of British Steel, citing financial instability under the ownership of Chinese conglomerate Jingye Group. The firm, which owns and operates the Scunthorpe steelworks, has reportedly been losing up to £700,000 per day, threatening the viability of one of the nation’s most strategic industrial assets.
British Steel is the country’s last remaining producer of virgin steel via traditional blast furnace methods. Its output supports sectors including defense, construction, and railway infrastructure. The government’s intervention is aimed at ensuring production continuity and safeguarding thousands of jobs.
“We are not willing to let this vital industry collapse,” said Business Secretary Eliza Morgan. “This temporary nationalization will provide stability while we transition to a cleaner, more modern steelmaking process.”
The plan includes keeping the blast furnaces running until new electric arc furnaces can be installed, in line with the UK’s decarbonization strategy. Government officials confirmed they will provide emergency funding and support a long-term restructuring to prepare British Steel for privatization under more sustainable conditions.
Industry leaders welcomed the move, though questions remain about the future ownership of the company and the cost to taxpayers.
VietnamSteel by Hoa Sen Group
