British Steel has temporarily come under the control of the British government after the announcement of halting primary production at the Scunthorpe plant. This is reported by the railway transport news portal Railway Supply.

British Steel has temporarily come under the control of the British government after the announcement of halting primary production at the Scunthorpe plant.
Photo: UK Government

On April 15, 2025, the UK government swiftly passed a law granting the state the authority to manage British Steel. This decision ensured employee wages were paid and continued the supply of coking coal and iron ore from the US and Australia.

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British Steel as a Strategic Asset

The Cabinet explained that the intervention was necessary to preserve a key industry that supports over 37,000 jobs across the supply chain. Additionally, keeping British Steel operational is vital for the implementation of infrastructure projects, including housing, schools, and transportation facilities.

Funding will come from the state modernization fund for the steel industry. The total support amounts to £2.5 billion, approximately $3.1 billion at the current exchange rate. These funds will be allocated for technology upgrades over the next five years.

Ownership History and Transformation of British Steel

The Jingye Group acquired British Steel in March 2020. The deal included plants in Scunthorpe, Teesside, and Skinningrove, as well as foreign assets in the Netherlands.

The French company Hayange, formerly part of British Steel France Rail, was acquired by the British manufacturer Liberty Steel in August 2020. Liberty Steel specializes in rail production.

Thus, the government intervention is aimed at preserving the industrial balance, protecting jobs, and ensuring the stability of this critical sector.

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