MINISTERS are considering renationalising British Steel to safeguard thousands of jobs as negotiations stall between the government and Jingye, the company’s Chinese owners, over a £1 billion rescue plan for the Scunthorpe site.
Business secretary Jonathan Reynolds is leading discussions to determine the financial contributions from both parties. However, with limited progress, nationalisation is emerging as a possible solution, according to The Guardian. A Whitehall official described it as "one of several options" but noted it would involve significant financial implications.
A spokesperson for the business secretary declined to rule out nationalisation but stated there are “no plans” to do so. The government is focused on supporting a “green steel transition” that benefits the workforce, taxpayers, and the steel industry’s future.
British Steel’s Scunthorpe plant employs 4,000 people and is the UK’s sole steelmaker using iron ore. The company is central to government infrastructure and national security plans, producing materials for railways, heavy machinery, and warships.
Discussions have centred on replacing the site’s two blast furnaces with electric arc furnaces to reduce emissions, helping meet the UK’s net-zero target by 2050. However, plans for an additional furnace in Teesside have reportedly been scrapped, disappointing local leaders.
Unions have expressed support for nationalisation. Unite General Secretary Sharon Graham said the government acting as an "investor of first resort" would be a critical step. GMB union officer Charlotte Brumpton-Childs criticised private sector failures and advocated for renationalisation.
British Steel was nationalised in 2020 for ten months before Jingye’s acquisition. Negotiations are ongoing as unions push to protect jobs and production capacity. A resolution is needed before the end of January, when the company is expected to run out of raw materials.
The Guardian reported that if Jingye withdraws, the government could either nationalise the company or allow it to enter administration in search of a new buyer.
(Photo credit: PTI)
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