Steelmaking in UK lives to see another day—after government intervention
What's the story
The UK government has taken control of the operations of British Steel, owned by Chinese conglomerate Jingye, after passing emergency legislation through Parliament. Business Secretary Jonathan Reynolds told MPs that the government's next probable move would be to nationalize the Scunthorpe plant, which employs 2,700 people. The move is to stop Jingye from closing its two blast furnaces and halting steel production in the UK.
Legislation passed
Emergency powers enacted to avert steel production halt
The emergency legislation was fast-tracked through Parliament in a day, leading to a rare Saturday sitting of both houses. After its passage by Commons and Lords, UK government officials arrived at the Scunthorpe site to take control of the operations. PM Sir Keir Starmer said, "Today, my government has stepped in to save British steel," adding they were committed to protecting thousands of jobs and securing the industry's future.
Rising tensions
Tensions rise at Scunthorpe plant amid takeover
The law gives Reynolds sweeping powers to control the plant's operations and staff, so that production doesn't stop. However, Jingye will continue to own the plant for the time being. Tensions between Jingye officials and workers at the Scunthorpe site have increased in recent days, prompting the police to intervene due to suspected breach of the peace.
Investment prospects
Government's hope for private investment to save plant
The government continues to hope for private investment to rescue the loss-making Scunthorpe plant. But no company has yet been found to make an offer. In the Commons, Reynolds admitted public ownership was "the likely option," and the government would "pay the fair market rate" to shareholders in case of nationalization, but added, "in this case, the market value is effectively zero."