The UK government is urgently working to secure raw materials to keep the country's last steelmaking blast furnaces running. This action follows emergency legislation passed to take control of British Steel after its Chinese owners, Jingye, halted raw material orders.
Prime Minister Keir Starmer's government intervened to prevent the closure of British Steel's main plant in Scunthorpe. Government officials are on-site to ensure the timely delivery of raw materials to the blast furnaces. Other firms, including Tata and Rainham Steel, have offered assistance in securing supplies.
While a trade union representative expressed reassurance that coking coal would be delivered, government ministers were unable to guarantee the furnaces' survival. Shutting down blast furnaces can cause serious damage, making it imperative to maintain their operation.
Business Secretary Jonathan Reynolds noted the UK's vulnerability in allowing its steel industry to be controlled by a Chinese company. Jingye, who acquired British Steel in 2020, claims to have invested over £1.2 billion but was losing approximately £700,000 daily. The government saw the potential closure as a threat to economic security and jobs.
While stopping short of nationalization, the government is open to finding a private sector partner for co-investment, with nationalization remaining a likely option.