In April 2025, the UK government enacted emergency legislation to assume control of British Steel’s Scunthorpe plant, the nation’s last remaining blast furnace facility. This decisive action was prompted by the Chinese owner, Jingye Group, announcing plans to shut down the plant due to daily losses of £700,000. The Department for Business and Trade (DBT) responded by mandating 24-hour ministerial access to the site and requiring daily operational reports, aiming to prevent the cessation of operations that would jeopardize 2,700 jobs and the UK’s steel-making capabilities.
Although Jingye retained ownership, the government took over management to ensure the plant’s continued operation. The Steel Industry (Special Measures) Act 2025 granted the Secretary of State for Business and Trade the authority to direct operations and prevent asset closures deemed in the public interest. This legislation also imposed criminal penalties for non-compliance and allowed the government to seek a High Court injunction to enforce continued operation.
The government’s intervention included over £100 million in taxpayer funds to maintain operations, with additional costs anticipated due to potential U.S. tariffs linked to Jingye’s Chinese ownership. Despite previous commitments to invest £1.2 billion in revitalizing British Steel, Jingye’s financial challenges have led to the current crisis.
To address the plant’s long-term future, the government has initiated plans to convert the blast furnaces to greener electric arc technology, involving a £2 billion investment and the recruitment of 180 workers. While the preferred option is to find a private buyer, potential nationalization remains a possibility, with compensation negotiations expected to be complex.
This unprecedented government intervention underscores the strategic importance of steel production to the UK’s economy and national security. The situation continues to evolve, with ongoing discussions about the plant’s future ownership and the broader implications for the UK’s industrial policy.
