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Summary:
- The UK government has assumed operational control of British Steel’s Scunthorpe plant to prevent its imminent closure by Chinese owner Jingye Group.
- Emergency legislation was enacted to maintain the UK’s sole remaining blast furnaces, safeguarding 2,700 jobs and critical industrial capabilities.
- Jingye’s refusal of a £500 million aid package, demanding £1 billion instead, led to the government’s decisive intervention.The Independent+3News Minimalist+3PressWay • Your Route to Real News+3
- The move has sparked political debate over energy policies and the future of domestic manufacturing.
News in Detail:
In a significant move to protect the UK’s industrial infrastructure, the government has taken control of British Steel’s Scunthorpe plant, the nation’s last facility capable of producing steel from raw materials. This action follows the Chinese owner Jingye Group’s plans to shut down the plant’s blast furnaces, citing daily losses of £700,000 and escalating environmental costs. The Sun+4AP News+4The Australian+4
Prime Minister Keir Starmer convened an emergency parliamentary session on April 12, 2025, to pass the Steel Industry (Special Measures) Act 2025. This legislation grants the Secretary of State for Business and Trade the authority to direct operations of steel manufacturers to prevent asset closures deemed against public interest. The Guardian+2Wikipedia+2AP News+2
The government’s intervention aims to preserve essential steel production capabilities vital for sectors such as defense, construction, and transportation. The shutdown of the Scunthorpe plant would have left the UK as the only G7 nation without domestic steel production, raising concerns over national security and economic independence. The Sun+1Wikipedia+1
Jingye Group’s rejection of a substantial government aid package, demanding double the offered amount, prompted the emergency measures. The company’s actions, including canceling raw material orders, were perceived as a strategic move to deindustrialize the UK, according to some officials. News MinimalistThe Australian
The takeover has ignited political debates, with critics attributing the crisis to high energy costs linked to the UK’s Net Zero policies. Opponents argue that these policies have made domestic manufacturing less competitive, leading to increased reliance on foreign imports. The Sun
While the government has not fully nationalized British Steel, the current measures represent a significant step toward increased state involvement in critical industries. The situation underscores the challenges of balancing environmental objectives with economic and industrial resilience.
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