UK takes steps toward nationalizing last steel plant
(MENAFN) The UK government is considering nationalizing the last primary steel plant in the country, located in Scunthorpe, as an emergency measure to keep its operations running. The plant, owned by the Chinese company Jingye, has been losing around £700,000 ($916,000) per day due to factors like President Donald Trump’s 25% steel tariffs, high CO2 emission fees, and soaring energy prices in the UK. Despite a £500 million offer from the British government to keep the plant's operations running, the company reportedly rejected the deal.
On Saturday, Prime Minister Keir Starmer recalled Parliament from its Easter break to pass emergency legislation that would allow the UK government to take control of any steel plant facing closure. This recall of Parliament was the first since the Falklands War in 1982. The bill enables the government to intervene in steel plants at risk of halting operations, securing their continued use.
Although Jingye still owns the plant, nationalization is being considered a "likely option," according to Jonathan Reynolds, the UK's State Secretary for Business and Trade. The UK government is currently seeking a company to purchase British Steel. Reynolds added that the market value of the business is effectively zero, and taxpayers would need to cover the plant’s daily losses.
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