Sat Apr 12 19:12:44 UTC 2025: ## UK Government Seizes Control of British Steel in Emergency Rescue
**London, UK** – The UK government has taken emergency control of British Steel, averting the immediate closure of its blast furnaces and saving 3,500 jobs. The intervention, approved by Parliament in an emergency Saturday sitting, follows a collapse in negotiations with the company’s Chinese owner, Jingye Group, over a transition to greener production methods.
Prime Minister Keir Starmer visited the Scunthorpe site, highlighting the urgency of the situation. The blast furnaces were reportedly losing £700,000 ($915,600) a day and on the verge of closure. Starmer emphasized the importance of protecting the jobs and communities reliant on the steelworks.
Business Secretary Jonathan Reynolds explained that the new legislation grants the government temporary operational control to ensure worker pay, secure raw materials, and keep the furnaces running. He indicated that full nationalization is increasingly likely, citing concerns over Jingye Group’s actions. The bill passed the House of Commons without opposition.
The move marks the UK’s largest state rescue since the 2008 financial crisis. Closure of British Steel’s Scunthorpe plant would leave the UK as the only G7 nation unable to produce virgin steel, raising concerns about national security and reliance on foreign suppliers. The company has faced challenges from global oversupply, high energy costs, and recently imposed US tariffs of 25 percent on 5 percent of its exports, impacting approximately $520 million in sales.
Reynolds vowed to fight for the future of British Steel and to challenge the US tariffs, while also emphasizing the government’s commitment to the steel sector, with a previously announced £2.6bn ($3.2bn) support package and a forthcoming long-term strategy.
First Piper 