UK Government Takes Over Last Major Steel Plant From Chinese Owner Jingye
Britain’s government has taken effective control of the nation’s last major steel plant at Scunthorpe, averting the imminent closure of two critical blast furnaces operated by Chinese firm Jingye Group.
Lawmakers approved an emergency rescue bill during a rare parliamentary session that empowers Business Secretary Jonathan Reynolds to manage the plant’s operations, secure essential raw materials, and protect the jobs of 3,000 workers.
This intervention arrives amid severe market challenges and mounting losses that threatened Britain’s primary steelmaking capacity.
Prime Minister Keir Starmer convened lawmakers for a Saturday session—the sixth of its kind since World War II—to secure support for the legislation, which received royal assent from King Charles III.
Jingye Group reported that the Scunthorpe plant is losing £700,000 a day due to adverse market conditions and increased environmental costs.
A 25% steel tariff imposed by former US President Donald Trump has further complicated the financial outlook for the plant.
According to CNN, Jingye’s decision to cancel orders for key raw materials—including iron pellets and coking coal—has raised fears that the blast furnaces might shut down permanently within days.
A shutdown would leave the UK as the only G7 nation unable to produce steel from raw materials, potentially crippling industries such as construction, defense, and rail transport.
The rescue measures are designed to mitigate these risks and secure the country’s steelmaking future.
Following the bill’s passage by a voice vote in the House of Commons, Starmer visited Scunthorpe to meet with workers whose contributions have long been the backbone of the town’s industry. “It’s your jobs, your lives, your communities, your families,” Starmer said, underscoring the historic and economic significance of the facility.
Business Secretary Jonathan Reynolds warned that without timely intervention, Jingye’s excessive demands could result in an irreversible shutdown of primary steelmaking, deepening the nation’s reliance on imported steel.
