British Steel’s Scunthorpe facility, the UK’s last primary steelmaking plant, is facing potential closure following claims of ‘sabotage’ by its Chinese owner, Jingye.
The UK government has stepped in to take temporary control of the site to prevent shutdown and secure critical raw materials needed to keep the blast furnaces running.
Officials suspect Jingye deliberately allowed raw material supplies to dwindle, potentially to undermine domestic production and increase the UK’s reliance on steel imports from China. The allegations have sparked serious concern over the nation’s industrial independence and supply chain security.
In response, dozens of UK-based businesses have offered support, signalling widespread commitment to maintaining domestic steelmaking capabilities. The government is actively working to keep the furnaces operational while searching for a private investor to take over the plant.
While nationalisation remains on the table, the government has expressed a preference for a co-investment approach with the private sector. The goal is to ensure a sustainable, long-term future for steel production in the UK, protecting jobs and boosting economic resilience.
The situation highlights the importance of steel to the UK’s infrastructure and defense sectors, with ministers calling it a matter of national interest.
On Tuesday (15 April) the BBC reported that the government’s intervention would mean that British Steel’s blast furnaces would continue running with a delivery of enough raw materials to keep them lit for the “coming weeks”.
Coking coal and iron ore from the US will be unloaded at Immingham docks and transported to the Scunthorpe site after a scramble for supplies. A separate shipment of materials on its way to the UK from Australia.
However, China has respinded by urging Britain to “avoid politicising trade cooperation or linking it to security issues” or risk losing the confidence of firms investing in the UK.
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