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regular-article-logo Thursday, 24 April 2025

UK bullish on British Steel after seizing control from Chinese owners

Ministers said British Steel’s owners, China’s Jingye Group, had wanted to shut the furnaces at the Scunthorpe plant after they rejected a government funding proposal, a move which would force Britain to import steel instead

Reuters Published 15.04.25, 07:18 AM
Blast furnaces at the Scunthorpe plant.

Blast furnaces at the Scunthorpe plant. Reuters

Britain expressed confidence on Monday that it could secure enough raw materials to keep the blast furnaces burning at its last maker of virgin steel, after the government seized operational control from its Chinese owners.

Ministers said British Steel’s owners, China’s Jingye Group, had wanted to shut the furnaces at the Scunthorpe plant after they rejected a government funding proposal, a move which would force Britain to import steel instead.

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The government recalled Parliament at the weekend — the first Saturday recall since the 1982 Falklands War — to pass emergency legislation and give it powers to direct the company’s board and workforce, and to order raw materials.

By Monday morning it had approved the appointment of an interim chief executive and chief commercial officer — both long-term employees of the plant — and said it had established that enough raw materials were in the country.

A spokesperson for Prime Minister Keir Starmer said two shipments containing iron ore, pellets and coking coal had docked at a local port, with a third on its way.

“We are now confident in securing the supply of materials needed,” the spokesperson told reporters. “Obviously we’ll be working with management to identify further raw materials needed to keep a steady pipeline and to keep the furnaces burning.”

Treasury department minister James Murray said earlier on Monday that the focus was on getting the materials into the blast furnaces, and said if the government had not acted on Saturday the blast furnaces would be closing.

A number of businesses, including India’s Tata and local distributor Rainham Steel, have also offered managerial support and raw materials, the government said.

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