UK takes British Steel into full public ownership to protect jobs and national capability, says Prime Minister Keir Starmer.
LONDON: The British government said Thursday it had taken British Steel into public ownership to “protect the future of steel production in the UK”, fully nationalising the company after taking control from Chinese firm Jingye.
“Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability,” Prime Minister Keir Starmer said in a statement.
Jingye, which bought British Steel in 2020, lost control of the company in April last year when Starmer’s government intervened at the struggling firm, which was facing imminent closure.
Business Minister Peter Kyle said the government stepped in last year “to keep the blast furnaces running and prevent a disorderly closure that would have put steel production, supply chains and thousands of jobs at risk”.
“Since then, ministers and officials have worked intensively to find a long-term solution for the business,” he added.
Starmer announced legislation in May to fully nationalise British Steel, the country’s last factory that can make steel from scratch.
The UK government’s takeover followed Jingye’s declaration that the northern England plant was no longer financially viable.
Nationalisation brings British Steel back into government ownership for the first time since 1988.
London had seen the possible closure of the plant as a threat to Britain’s long-term economic security, given the decline of the country’s once-robust steel industry.
