British Steel’s Scunthorpe plant, owned by Chinese firm Jingye, is reportedly losing a significant amount of money due to tariffs and increased energy costs.
To prevent the closure of the UK’s last primary steelmaking facility, the British government is considering nationalization as an emergency measure to maintain operations.
Jingye, the Chinese parent company of British Steel, claims the Scunthorpe plant is losing approximately £700,000 ($916,000) daily, citing the impact of former President Trump’s 25% tariffs on steel imports to the US, substantial CO2 emission charges, and high domestic energy prices. It’s been reported that the company rejected a £500 million government offer to sustain its blast furnace “virgin steel production.”
On Saturday, Prime Minister Keir Starmer convened Parliament during the Easter break to enact urgent legislation that would empower the government to take control of any “steel undertaking” facing potential shutdown. This parliamentary recall is the first of its kind since the Falklands War in 1982.
The legislation passed on Saturday states that “The Secretary of State may take any action necessary to ensure the continued and safe operation of the specified assets [of] the steel undertaking” if those assets “are at risk of ceasing to be used.”
Starmer stated that the government intervened to safeguard UK steel manufacturing.
He affirmed in a statement on X on Saturday that “All options are being considered to secure the industry’s future.”
While Jingye still owns the plant, State Secretary for Business and Trade Jonathan Reynolds indicated that nationalization is a “likely option.”
According to the BBC, the UK is actively seeking a buyer to acquire and manage British Steel.
Reynolds told the BBC that the business’s market value was “effectively zero” and that UK taxpayers would have to bear the plant’s £700,000 daily losses.
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