UK advances toward state ownership of final steel factory
Scunthorpe's Chinese parent company has reported that the site is losing money due to tariffs and escalating energy costs. In an emergency effort to maintain operations at the last primary steelmaking facility in the UK, the British government...
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Scunthorpe's Chinese parent company has reported that the site is losing money due to tariffs and escalating energy costs.
In an emergency effort to maintain operations at the last primary steelmaking facility in the UK, the British government is considering nationalization.
British Steel’s owner, the Chinese firm Jingye, disclosed that the Scunthorpe plant has been incurring losses of approximately £700,000 each day, driven by President Donald Trump’s 25% tariffs on steel imports to the US, significant CO2 emission fees, and soaring energy prices in the UK. The parent company allegedly rejected a £500 million offer from the British government to sustain its blast furnace for “virgin steel production.”
On Saturday, Prime Minister Keir Starmer summoned lawmakers back from their Easter recess to enact an emergency bill permitting the UK to intervene and take control of any steel operations facing closure. This recall of Parliament marks the first such occurrence since the Falklands War in 1982.
“The Secretary of State may do anything for the purpose of securing the continued and safe use of the specified assets [of] the steel undertaking” if those assets “are at risk of ceasing to be used,” the passed bill states.
Starmer emphasized the government's commitment to safeguarding UK steel manufacturing.
“All options are on the table to secure the future of the industry,” he stated in a message on X on Saturday.
While Jingye currently holds ownership of the plant, State Secretary for Business and Trade Jonathan Reynolds noted that nationalization remains a “likely option.”
The UK is actively seeking a buyer to take over British Steel, as reported by the BBC.
In remarks to the British state broadcaster, Reynolds indicated that the market value of the business is “effectively zero,” and that the UK taxpayer would be responsible for covering the steel plant's daily losses of £700,000.
Aarav Patel for TROIB News
In an emergency effort to maintain operations at the last primary steelmaking facility in the UK, the British government is considering nationalization.
British Steel’s owner, the Chinese firm Jingye, disclosed that the Scunthorpe plant has been incurring losses of approximately £700,000 each day, driven by President Donald Trump’s 25% tariffs on steel imports to the US, significant CO2 emission fees, and soaring energy prices in the UK. The parent company allegedly rejected a £500 million offer from the British government to sustain its blast furnace for “virgin steel production.”
On Saturday, Prime Minister Keir Starmer summoned lawmakers back from their Easter recess to enact an emergency bill permitting the UK to intervene and take control of any steel operations facing closure. This recall of Parliament marks the first such occurrence since the Falklands War in 1982.
“The Secretary of State may do anything for the purpose of securing the continued and safe use of the specified assets [of] the steel undertaking” if those assets “are at risk of ceasing to be used,” the passed bill states.
Starmer emphasized the government's commitment to safeguarding UK steel manufacturing.
“All options are on the table to secure the future of the industry,” he stated in a message on X on Saturday.
While Jingye currently holds ownership of the plant, State Secretary for Business and Trade Jonathan Reynolds noted that nationalization remains a “likely option.”
The UK is actively seeking a buyer to take over British Steel, as reported by the BBC.
In remarks to the British state broadcaster, Reynolds indicated that the market value of the business is “effectively zero,” and that the UK taxpayer would be responsible for covering the steel plant's daily losses of £700,000.
Aarav Patel for TROIB News
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