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U.K. Government Works to Keep British Steel’s Blast Furnaces Running, Looks to Scunthorpe’s Future
04/17/2025 - In an emergency session on Saturday, U.K. Parliament passed legislation to prevent Chinese-owned British Steel’s Scunthorpe plant from shutting down its blast furnaces and ending primary steel production in the U.K., The Guardian reported.
U.K. business secretary Jonathan Reynolds was granted emergency powers that allow him to order British Steel to buy the raw materials it needs to remain in operation while the government pays for running costs, reported The Guardian.
British Steel issued a statement on Tuesday confirming that vital raw materials were unloaded at its port facility, Immingham Bulk Terminal, and transported to its headquarters in Scunthorpe to support iron- and steelmaking operations. Other raw materials were also confirmed to be on their way.
“My government has secured the raw materials to save British Steel. We acted to secure Britain's future. A Britain rebuilt with British steel, in the national interest. Helping to build the homes, railways, schools and hospitals we need to usher in a decade of national renewal,” said U.K. Prime Minister Sir Keir Starmer.
Reynolds said he will be looking for a long-term bidder for the Scunthorpe site. As part of British Steel’s GBP1.25 billion decarbonization plan, Ministers want to find a private sector company to help the government pay for a new electric furnace at the plant, reported The Guardian.
The Guardian also reported the GMB union called for an end to the formal redundancy program British Steel began last year, which could have meant closing both blast furnaces and the loss of 3,500 workers’ jobs.
“We are expecting the immediate threat of redundancies to be taken off the table, and we are looking to work with the secretary of state on planning the longer-term future for Scunthorpe and the steelmaking there,” said Charlotte Brumpton-Childs, national officer at GMB.
In a statement British Steel’s Chinese owner Jingye made to the Financial Times on Wednesday, it said it would “seek a proper solution that ensures a bright future for British Steel,” and that it had previously safeguarded jobs and made investments in the plant.
The Chinese foreign ministry warned the U.K. not to politicize the situation.
“We will continue to support U.K. business to engage with [China], while being clear-eyed to any risks and ensuring security and resilience,” said a U.K. government spokesperson according to The Guardian.
British Steel issued a statement on Tuesday confirming that vital raw materials were unloaded at its port facility, Immingham Bulk Terminal, and transported to its headquarters in Scunthorpe to support iron- and steelmaking operations. Other raw materials were also confirmed to be on their way.
“My government has secured the raw materials to save British Steel. We acted to secure Britain's future. A Britain rebuilt with British steel, in the national interest. Helping to build the homes, railways, schools and hospitals we need to usher in a decade of national renewal,” said U.K. Prime Minister Sir Keir Starmer.
Reynolds said he will be looking for a long-term bidder for the Scunthorpe site. As part of British Steel’s GBP1.25 billion decarbonization plan, Ministers want to find a private sector company to help the government pay for a new electric furnace at the plant, reported The Guardian.
The Guardian also reported the GMB union called for an end to the formal redundancy program British Steel began last year, which could have meant closing both blast furnaces and the loss of 3,500 workers’ jobs.
“We are expecting the immediate threat of redundancies to be taken off the table, and we are looking to work with the secretary of state on planning the longer-term future for Scunthorpe and the steelmaking there,” said Charlotte Brumpton-Childs, national officer at GMB.
In a statement British Steel’s Chinese owner Jingye made to the Financial Times on Wednesday, it said it would “seek a proper solution that ensures a bright future for British Steel,” and that it had previously safeguarded jobs and made investments in the plant.
The Chinese foreign ministry warned the U.K. not to politicize the situation.
“We will continue to support U.K. business to engage with [China], while being clear-eyed to any risks and ensuring security and resilience,” said a U.K. government spokesperson according to The Guardian.
