The UK Government is considering the nationalisation of British Steel, owned by China’s Jingye Group, following the company’s announcement to shut down its blast furnaces in Scunthorpe by the end of March, according to several British newspapers on Wednesday.
The closure of the blast furnaces would lead to the loss of 2,000 to 2,700 jobs amidst a dispute between the government and the company over public aid to transition to less polluting, electric arc furnaces which require less labour.
"All options are on the table," said British Prime Minister Keir Starmer on Tuesday before a parliamentary committee discussing potential nationalisation. He added, "We are doing everything we can to secure a prosperous future for these blast furnaces."
While not explicitly confirming plans for state control, a government source quoted by The Guardian highlighted the "enormous strategic importance" of the company, stating that nationalisation remains a possible option.
On BBC Radio 4, Culture Secretary Lisa Nandy expressed the government’s preference for a "commercial deal" with British Steel, describing it as the "right option, achievable and within reach."
British Steel, which employs 3,500 people in the UK, had stated by late 2023 that it planned to replace its blast furnaces, the last in the country, with electric equivalents.
By the end of March, the company cited "very difficult" market conditions and US tariffs on the sector, claiming to lose £700,000 (€840,000) per day.
Once a British industrial leader, British Steel has struggled for years and was rescued from bankruptcy by China’s Jingye Group in 2020.
