In a decisive move to safeguard the nation’s steel industry, the UK government has announced plans to pass emergency legislation on Saturday, April 12, 2025, to assume control of British Steel’s Scunthorpe plant. This action aims to prevent the immediate closure of the country’s last remaining blast furnaces and protect thousands of jobs.
British Steel, currently owned by China’s Jingye Group, employs approximately 3,500 workers at its Scunthorpe facility and supports many more within its supply chain. The company had intended to shut down the blast furnaces due to daily losses of £700,000, citing challenges such as increased energy costs and a 25% tariff imposed by the United States on steel imports.
Prime Minister Keir Starmer emphasized the critical importance of the plant, stating, “The future of British Steel hangs in the balance. Jobs, investment, growth, our economic and national security are all on the line.” He further noted that the government would “preserve all viable options” to keep the furnaces operational, including potential nationalization.
The emergency legislation will grant the government authority to direct the company’s board and workforce, ensure employee compensation, and procure necessary raw materials to maintain furnace operations. Managers have been instructed to keep the furnaces running, with assurances of reinstatement should they face dismissal for defying the company’s closure orders.
This parliamentary recall marks the first Saturday session since the Falklands conflict in 1982, underscoring the urgency of the situation. The Scunthorpe plant’s output is vital for the UK’s rail network, construction, and automotive industries.Without it, the nation would become reliant on steel imports amid global trade tensions and geopolitical uncertainties.
The government’s intervention follows months of negotiations with Jingye, during which a £500 million co-investment offer was made to support the plant. However, Jingye’s decision to proceed with closure plans prompted the need for immediate legislative action.
Trade unions have welcomed the government’s decisive steps, highlighting the importance of retaining domestic steel production capabilities. The situation remains fluid, with further developments anticipated as the government navigates the complex path toward securing the industry’s future .
