British Steel has come under public ownership after the government moved to “protect UK steelmaking”.<\/p>\n
The future of the steelworks, which employs roughly 2,700 people in Scunthorpe and supports many other industries in north Lincolnshire, has been dogged by uncertainty over recent years.<\/p>\n
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” Prime Minister Sir Keir Starmer said. <\/p>\n
The UK government took control of British Steel operations in Scunthorpe last year, though it has since remained under the ownership of the Chinese firm Jingye Group.<\/p>\n
Jingye has said it has begun the process of seeking compensation for nationalisation, having previously said the business was losing \u00a3700,000 a day. However, the UK government has said it could limit or refuse compensation.<\/p>\n
The BBC has been unable to get a response from Jingye to Thursday’s announcement.<\/p>\n
Starmer added: “British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength.<\/p>\n
“This government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future.”<\/p>\n
The government had previously sought private investors to take control of the steel manufacturer, initially stopping short of full nationalisation.<\/p>\n
“British Steel now belongs to the British people, and our focus is on the future: stabilising the business, backing the communities that rely on it and building a sustainable, competitive and decarbonised steel sector for the years ahead,” Business Secretary Peter Kyle said.<\/p>\n
On Wednesday, Parliament passed legislation allowing the government to bring the steel industry into public ownership under circumstances where it met a public interest test.<\/p>\n
A spokesperson for the Department for Business and Trade had confirmed on Wednesday the government was “strongly minded” to use the new powers in the case of British Steel.<\/p>\n
“The Steel Act gives us powers to nationalise steel companies where it’s necessary in the public interest, to protect a foundation industry that supports our critical national infrastructure, economy and defence,” the department said in a statement.<\/p>\n