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Released April 15, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government has enacted emergency powers to take control of Chinese-owned British Steel Limited (BSL) (Scunthorpe, England), the country's second biggest steelmaker.
The Prime Minister requested the recall of Parliament from its Easter recess to vote on emergency legislation to stop Jingye Steel from shutting down the blast furnaces at Scunthorpe. The move follows the collapse of recent talks with Jingye to continue steel operations with the help of a £500 million (US$646 million) rescue package to overhaul and modernize the operations. For additional information, see April 8, 2025, article - British Steel Rejects $646 Million Rescue Offer from U.K. Government. In just one day over the weekend the new Bill was voted in by both Houses, the Commons and Lords, and received Royal Assent. They give the government control over management and workers at the plant to guarantee that production continues, including the right to enter the Scunthorpe works by force to secure assets. Jingye will retain ownership of the plant for now unless the government finds a buyer or proceeds with calls to nationalize the operation. Funding for the site will come from the government's £2.5 billion (US$3.3 billion) steel fund, to help rebuild the industry over the next five years. British Steel had planned to transition to green steelmaking by investing in electric arc furnaces with the potential closure of two blast furnaces. It employs about 3,500 people at its manufacturing operations in Scunthorpe and Teesside.
"Today, my government has stepped in to save British Steel," said Prime Minister Sir Keir Starmer. "We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry. This government is turning the page on a decade of decline, where our manufacturing heartlands were hollowed out by the previous government. British steel will be the backbone as we get Britain building once more. This is a government of industry. That's why we've secured a better deal for the workers of Port Talbot. It's why we fought to secure the future of Harland & Wolff. It's why we've pledged £200 million (US$263 million) to Grangemouth. Our industry is the pride of our history, and I want it to be our future too."
The government claimed that Jingye intended to shut the furnaces and had been selling off key raw materials needed to keep them burning. It is still trying to secure the coking coal and iron ore needed to power the plant. A long list of companies including rival Tata Steel U.K. (London, England) have offered help with supplying the materials. China has accused the U.K. of "politicising trade cooperation" and claimed the decision could impact Chinese investment in U.K. industry.
The Scunthorpe plant is the only one in the U.K. that can produce virgin steel, a high-grade product essential in construction and transport, and is the main supplier of rail tracks used by state-owned rail operator Network Rail. The steel is also used in most of the country's ongoing major construction projects, including the Hinkley Point C nuclear plant, which is still under construction in Somerset. Last September, Industrial Info reported that Tata Steel U.K., the U.K.'s largest steelmaker, received a similar £500 million (US$646 million) rescue package from the government after protracted negotiations. For additional information, see September 20, 2023, article - Tata Steel U.K. Gets $620 Million Rescue Package.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Prime Minister requested the recall of Parliament from its Easter recess to vote on emergency legislation to stop Jingye Steel from shutting down the blast furnaces at Scunthorpe. The move follows the collapse of recent talks with Jingye to continue steel operations with the help of a £500 million (US$646 million) rescue package to overhaul and modernize the operations. For additional information, see April 8, 2025, article - British Steel Rejects $646 Million Rescue Offer from U.K. Government. In just one day over the weekend the new Bill was voted in by both Houses, the Commons and Lords, and received Royal Assent. They give the government control over management and workers at the plant to guarantee that production continues, including the right to enter the Scunthorpe works by force to secure assets. Jingye will retain ownership of the plant for now unless the government finds a buyer or proceeds with calls to nationalize the operation. Funding for the site will come from the government's £2.5 billion (US$3.3 billion) steel fund, to help rebuild the industry over the next five years. British Steel had planned to transition to green steelmaking by investing in electric arc furnaces with the potential closure of two blast furnaces. It employs about 3,500 people at its manufacturing operations in Scunthorpe and Teesside.
"Today, my government has stepped in to save British Steel," said Prime Minister Sir Keir Starmer. "We are acting to protect the jobs of thousands of workers, and all options are on the table to secure the future of the industry. This government is turning the page on a decade of decline, where our manufacturing heartlands were hollowed out by the previous government. British steel will be the backbone as we get Britain building once more. This is a government of industry. That's why we've secured a better deal for the workers of Port Talbot. It's why we fought to secure the future of Harland & Wolff. It's why we've pledged £200 million (US$263 million) to Grangemouth. Our industry is the pride of our history, and I want it to be our future too."
The government claimed that Jingye intended to shut the furnaces and had been selling off key raw materials needed to keep them burning. It is still trying to secure the coking coal and iron ore needed to power the plant. A long list of companies including rival Tata Steel U.K. (London, England) have offered help with supplying the materials. China has accused the U.K. of "politicising trade cooperation" and claimed the decision could impact Chinese investment in U.K. industry.
The Scunthorpe plant is the only one in the U.K. that can produce virgin steel, a high-grade product essential in construction and transport, and is the main supplier of rail tracks used by state-owned rail operator Network Rail. The steel is also used in most of the country's ongoing major construction projects, including the Hinkley Point C nuclear plant, which is still under construction in Somerset. Last September, Industrial Info reported that Tata Steel U.K., the U.K.'s largest steelmaker, received a similar £500 million (US$646 million) rescue package from the government after protracted negotiations. For additional information, see September 20, 2023, article - Tata Steel U.K. Gets $620 Million Rescue Package.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
