As the global trade war escalated pressure to maintain the country's ability to provide the steel it needs for domestic industry, the British government refused to rule out the possibility of nationalization of the last plant in ’, United Kingdom, which produces steel from raw materials.
According to local politicians and unions, unless the government intervenes, iron pellets used to produce steel in two large blast furnaces at Scunthorpe steel mills operated by British Steel may soon run out. This was because the plant's owner, China's Jingye Group’, canceled orders for these essential raw materials amid negotiations to increase government support.
The news comes two weeks after British Steel’in “ said it was considering shutting down blast furnaces because they are no longer financially sustainable due to tough market conditions, tariffs and rising environmental costs.
After Jingye’nin rejected a £500m (€577.6m) bid to help modernise the facility, the government is continuing negotiations with the company. Asked on Tuesday what the government is prepared to do to keep the plant open, Prime Minister Keir Starmer said ’ is firmly committed to steel production in the UK.
In a statement to the parliamentary committee, all options regarding “Scunthorpe are on the table, ” said.
British Steel and its ancestors have been producing steel at Scunthorpe’ for over 130 years, and the United Kingdom has benefited from ’'s development of advanced steelmaking technology during the Industrial Revolution. The factory currently employs about 2,700 people.
Jingye acquired British Steel’i at 2020’ and said the plant has invested more than £1.2 billion (€1.4 billion) to remain operational against “, the ongoing production instability.
UK's steel production falls
United KingdomDue to ’'s steel production, high production costs and the rapid growth of Chinese production since the late 1960s, %It's down 80, and that's brought prices down around the world.
Britain, the world's fifth-largest steel producer in 1970, produced only 5.6 million tons of steel in 2023; This is global production. %It makes up 0.3’. By comparison, China accounts for 1.02 billion tons of production worldwide. He produced his ’.
The remaining steel producers of ’ are now under pressure to reduce carbon emissions due to the threat of global warming. Most have switched to electric arc furnaces that produce steel from recycled material.
This left Scunthorpe’ as the only factory with blast furnaces capable of converting iron ore into untreated steel.
Union officials said British Steel’ must order more iron pellets in the next few days to guarantee delivery before the plant runs out of raw materials in late May.
Thomas Smith, a steelworker and representative of the union community, told Sky News’e “ this week that we are in danger of losing these furnaces. “ added that if we miss the deadlines, we will reach a point where we will have to decide whether to close them both.
During a debate in the House of Commons on Monday, lawmakers said U.S. President Donald Trump, fueled by ’'s new import taxes, needed his own steel-making industry to maintain ’'s economic independence amid a flourishing trade war.
Martin Vickers, a member of Parliament representing the region adjacent to the Scunthorpe’, said he believed that Jingye’ was not involved in the meaningful negotiations with “.
In a speech to the House of Commons on Monday in ’, “ said that in this case I have come to the view that temporary expropriation is the only way. “This will secure jobs at Scunthorpe’ and secure the future of steelmaking.”
Industry Minister Sarah Jones said Jingye’ continued to meet with the government.
Our belief was clear that the best way forward for “Scunthorpe and British Steel was to continue as a commercially managed business with private investment and government backing, ” said. But I can tell the honourable gentleman that no option is on the table. - “
