British Steel was at risk as Business Secretary Johnathon Reynolds said he was forced to seek emergency powers to prevent company owner Jingye shutting down its two blast furnaces, ending steel production in the UK.
Furnace Closures and Raw Material Disruptions
Last month, Jingye launched the consultation on furnace closures that could have led to 2,700 jobs at risk.
Jingye also decided to cancel future orders for the iron ore, coal and other raw materials needed to keep the furnaces running, causing the government to scramble over supplies.
Parliament Action and Emergency Legislation
MPs were called away from their Easter holidays to debate the legislation, which has received Royal Assent after being passed by the Lords and Commons.
On the same day, workers at British Steel blocked Chinese executives and the company owner from gaining access to key areas of the steelwork.
It was believed that the Chinese delegation were trying to force the closure of the plant.
Police Involvement and Site Status
In response, police were called to the plant in a suspected breach of the peace.
After an inspection, no concerns were raised, and no arrests were made.
Nationalisation and Material Supply Plans
The government may nationalise the Scunthrope plant but is currently looking for potential private investors to fund operations.
To tackle the supply issues, coking coal and iron ore from the US will be used for the site, having just been shipped into Immingham docks.
Another shipment of materials will be provided by Australia, following a dispute over cargo ownership between the government and Jingye.
Orders have also gone underway with Sweden.
Government Efforts to Sustain Operations
The government has said that the import from the US will allow the site to run for the coming weeks.
The materials have been paid for by the government, covered by existing budgets.
Prime Minister’s Recognition and Future Plans
In response to the latest developments, Prime Minister Keir Starmer recognised the efforts of British Steel workers.
“You are the people who have kept this going. You and your colleagues for years have been the backbone of British Steel, and it’s really important that we recognise that,” he said.
“This government is turning the page on a decade of decline, where our manufacturing heartlands were hollowed out by the previous government,” he said.
“Our industry is the pride of our history – and I want it to be our future too.
To read more on this story click here: British Steel Announces Consultation on Furnace Closures
