British Steel taken into public ownership to 'protect the UK’s national interest'
British Steel was previously owned by the Chinese company Jingye
British Steel has been brought into public ownership “to protect the future of steel production in the UK”, the Government said.
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The Government said British Steel has been taken into public ownership “to protect the UK’s national interest”.
It comes after legislation received royal assent on Wednesday to allow ministers to transfer steel businesses’ shares or property into public ownership.
The Department for Business and Trade said the move was essential to maintain steel production at British Steel’s site in Scunthorpe, Lincolnshire, to protect both the company’s future and UK supply chains.
Prime Minister Sir Keir Starmer said: “British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.
“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.”
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British Steel was previously owned by the Chinese company Jingye.
The company had planned to close its Scunthorpe blast furnaces in North Lincolnshire.
But Parliament was recalled on a Saturday in April last year to approve special measures legislation to keep the plant open.
Ministers gained new powers to tell the firm how it can use and manage its assets.
They did not take a stake in the company at the time.
The Government said a new leadership team made up of non-executive directors would stabilise operations on site and make the firm “a commercially sustainable, low-carbon enterprise”.