Britain nationalises British Steel to protect domestic steelmaking
Government Action and Impact on the Steel Industry
By Muvija M and Akanksha Khushi
LONDON, July 16 (Reuters) - Britain has nationalised British Steel, fully taking over the loss-making company that was previously Chinese owned in an effort to protect the future of steel production in the country, the government said on Thursday.
The move is the latest in a series of measures Britain has taken to support its steel industry, including a new set of tariffs and quotas to protect the sector from the dumping of cheap steel, and a tariff deal with the U.S.
The government said it was bringing British Steel into public ownership in the national interest to preserve the country's ability to make steel domestically.
Securing the Future of UK Steelmaking
"Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability," outgoing Prime Minister Keir Starmer said.
Britain's Last Primary Steel Plant
BRITAIN'S LAST PRIMARY STEEL PLANT COSTS MILLIONS TO SUPPORT
The government seized operational control of British Steel from its Chinese owners, Jingye, in April 2025 to prevent the closure of the steelworks in Scunthorpe in northern England and protect 2,700 jobs at the plant, as well as thousands more in the supply chain.
International Response and Industry Challenges
A spokesperson for the Chinese embassy in London said in a statement on Thursday that Beijing's position on the matter had been "clear and consistent."
The spokesperson urged the British government to "engage actively with the relevant Chinese company to seek a solution acceptable to both sides."
The plant, the country's last remaining primary steelmaking site, supplies the rail, construction and automotive industries.
But in recent years it has struggled with high energy costs in Britain and a glut of steel in the global market, and business minister Peter Kyle told Times Radio that the government was spending over a million pounds a day to keep it running.
"We need that virgin steel production because if this were to disappear, we would become at the mercy of international markets and supply from other countries," he said.
Financial Commitment and Future Plans
Estimating that the government had already spent £640 million ($866.1 million) to keep the plant open, Kyle said: "It is value for money for the British public, but we need to make sure that this business moves forward."
Legislation to allow the government to take ownership of British Steel received final approval on Wednesday after the state failed to find a buyer for the company, which was privatised under Margaret Thatcher in 1988.
Industry Reactions
Industry group UK Steel said nationalisation was the right move, and the sector now needed "a long-term plan that restores British Steel to commercial sustainability".
($1 = 0.7389 pounds)
(Reporting by Akanksha Khushi in Bengaluru, Muvija M and Alistair Smout in London and Natalia Bueno Rebolledo in Mexico City; Editing by Sonali Paul, Jan Harvey and Mark Porter)
