The UK government on Thursday nationalized Chinese-owned British Steel, saying the move was necessary to secure the future of steel production in the country.
The government took operational control of British Steel in April last year after its Chinese owner, Jingye, prepared to shut down two blast furnaces at the company’s Scunthorpe plant, which employs about 2,700 people.
According to the Department for Business and Trade, the government was unable to reach an agreement with Jingye that would secure the company’s future despite extensive negotiations.
After Parliament granted the necessary powers, the government decided that bringing British Steel into public ownership was the “right and necessary course of action” to protect the future of domestic steelmaking.
A new leadership team has been appointed to stabilize the company and prepare it for a commercially sustainable, low-carbon future.
The government said maintaining steel production at the Scunthorpe plant is critical to preserving the UK’s ability to produce steel domestically.
Prime Minister Keir Starmer described British Steel as a cornerstone of the country’s industrial strength.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” Starmer said.
