Govt keeps furnaces on at UK Steel

The British government moved swiftly Saturday to take control of operations at the country’s last large crude steel-producing facility, in what appeared to be a major step toward nationalising the plant.

- STANLEY REED ESHE NELSON

In an unusual and dramatic move, the government had summoned law-makers back from vacation Saturday to approve the government's emer-gency legislation.

The government said it was acting to prevent the owners of the British Steel complex in Scunthorpe, a Chinese com-pany called Jingye, from taking steps unilaterally to close the blast furnaces, potentially costing 2,700 jobs.

“Steel is fundamental to Britain’s industrial strength, to our security and to our identity as a primary global power.” Jonathan Reynolds, the busi-ness and trade secretary, told Par-liament on Saturday in introducing the legislation.

Despite the interest in preserving steelmaking now, it has long been in decline in Britain. Crude steel output has fallen by about 50% over the past decade, according to UK Steel, a trade group.

The industry in Britain struggles with high energy costs as well as com-petition, mainly from China, which now makes more than half of all global steel.

The 25% tariffs that President Donald Trump recently imposed on steel imported into the United States have added a further hurdle.

In this difficult environment, the gov-ernment of Prime Minister Keir Starmer now risks being stuck with supporting a business whose owners say is losing £700,000 a day (around $915,000).

‘BOTCHED NATIONALISATION’