The future of British Steel hangs in the balance as unions and industry leaders urge the UK government to consider nationalisation [1] if a deal cannot be reached with its Chinese owners, the Jingye Group. The proposed closure of two blast furnaces at the Scunthorpe plant has sparked fears of significant job losses, with up to 2,700 positions at risk.
British Steel’s decision to launch a consultation on the closures comes amid claims that the furnaces are no longer financially sustainable. The government had offered a £500 million support package to aid the company’s transition to greener steel production, but negotiations have reportedly stalled.
Industry body UK Steel has warned that the closure would mark the end of steelmaking in Scunthorpe, a site with over 160 years of history, and could leave the UK as the only G7 nation unable to produce virgin steel. Gareth Stace, Director General of UK Steel, described the potential closure as a “gut punch to UK steelmaking” and emphasized the strategic importance of maintaining domestic steel production for national security and infrastructure.
Alasdair McDiarmid, Assistant General Secretary of the Community union, echoed these concerns, “British Steel is a business of huge strategic importance, not just to the local economy and the wider steel sector, but to the country as a whole.” He called on the government to act decisively.
The debate over nationalisation has also reached the House of Commons, where MPs have expressed mixed views. Martin Vickers, Conservative MP for Brigg and Immingham, suggested that nationalisation could be considered as a last resort, while Industry Minister Sarah Jones emphasized the government’s preference for continued negotiations with Jingye.
Sources:
[1] Calls for steel nationalisation if deal not agreed https://www.bbc.com/news/articles/crrdrqx8pygo