SCUNTHORPE: More than a dozen companies have offered to help British Steel secure raw materials for its Scunthorpe plant after the British government took control of the business under emergency legislation passed Saturday, officials said.
The last-minute intervention was aimed at preventing the permanent closure of Britain’s sole remaining primary steelmaking facility. Without immediate action, the plant’s two blast furnaces risked shutting down due to a lack of coke and iron ore—a scenario that would be irreversible.
Business Secretary Jonathan Reynolds acknowledged Sunday that the government could not guarantee sufficient supplies to keep the furnaces operational but argued that nationalization was necessary to buy time.
“If we hadn’t acted, the blast furnaces were gone, steel production in the U.K. would have gone,” Reynolds told the BBC. “We’ve given ourselves the opportunity. We are in control of the site.”
British Steel has named a new interim leadership team, as the UK government confirmed it has secured enough coal and iron ore to sustain the country’s last primary steel manufacturer.
Allan Bell has been appointed interim CEO, while Lisa Coulson takes on the role of interim chief commercial officer, the company announced Monday. Both leaders have extensive experience, having worked at British Steel’s Scunthorpe plant for 14 and 19 years, respectively. Their appointments were approved by Business Secretary Jonathan Reynolds.
Race Against Time
British Steel’s Chinese owner, Jingye Group, had halted raw material orders and begun selling existing stock, prompting the government’s emergency response. Reynolds accused Jingye of failing to negotiate “in good faith” and acting irrationally, suggesting the firm intended to close the furnaces and import steel from China instead.
Jingye had reportedly rejected a £500 million ($650 million) government support package, demanding over £1 billion with no commitment to keep the furnaces running. The company had also planned to take one furnace offline this week using a risky “salamander tap” procedure.
Nationalization Likely, but Costly
With no private buyers currently willing to take over British Steel, Reynolds admitted that full nationalization is the probable outcome. Modernizing the Scunthorpe plant could cost billions, and the government expects to lose money in the process.
“The cost of not acting would have been higher,” Reynolds said.
Political Backlash
The Conservative opposition criticized the Labour government’s handling of the crisis, calling it a “botched nationalization” that revealed a lack of planning.
Shadow Business Secretary Andrew Griffith accused Labour of creating a “hostile environment for employers” through tax policies and union influence. “They’ve landed themselves in a steel crisis entirely of their own making,” he said.
Local Conservative lawmakers, including Teesside Mayor Ben Houchen, had warned about Scunthorpe’s struggles but said their concerns were ignored.
Uncertain Future
While the government explores partnerships with other steel firms, the immediate priority is securing raw materials to keep the furnaces running. Officials remain on-site, assessing options to stabilize operations.
For now, British Steel’s survival hinges on whether the government can secure a lifeline—or face the political and economic fallout of its collapse.