China has cautioned the UK government against “politicising” the rescue of British Steel… This comes after its Chinese owner, Jingye, halted raw material orders for the Scunthorpe plant. A foreign ministry spokesperson in Beijing said linking trade cooperation to national security could damage investor confidence in the UK.

Tensions rise as China holds key to UK Steel’s survival

The UK government has passed an emergency law to prevent the shutdown of the last factory in the country that can produce virgin steel, steel made from raw materials rather than recycled scrap. 
This decision gives the government power to step in and take control of the British Steel plant in Scunthorpe, currently owned by a Chinese firm.
<h2>Why was the law passed?</h2>
On Saturday, in an unusual weekend session, MPs approved the Steel Industry (Special Measures) Bill without any resistance. The law aims to stop the closure of the vital Scunthorpe plant, which employs several thousand people and plays a key role in the construction and rail sectors.
Watch:&nbsp;<a href="https://www.wionews.com/videos/uk-recalls-parliament-as-british-steel-faces-daily-700000-loss-govt-aims-to-take-control-8955593">UK recalls Parliament as British Steel faces daily &pound;700,000 loss, govt aims to take control</a>
Prime Minister Keir Starmer said the government had to act quickly to stop the blast furnaces from being turned off and protect what remains of the UK&rsquo;s steel-making capabilities. Speaking to steelworkers in a nearby village hall, he said the move was &ldquo;in the national interest.&rdquo;
&ldquo;The most important thing is we&rsquo;ve got control of the site,&rdquo; Starmer said. &ldquo;We can make the decisions about what happens, and that means that those blast furnaces will stay on,&rdquo; he added.
The intervention follows recent protests at the plant. There were also reports on Saturday morning that workers had stopped executives from the Chinese parent company Jingye from accessing key parts of the site.
Also read: <a href="https://www.wionews.com/world/explained-why-uk-is-rushing-to-save-its-last-steel-plant-and-what-trump-china-and-indias-tata-steel-have-to-do-with-it-8955418" rel="dofollow noopener" target="_blank">Explained: Why UK is rushing to save its last steel plant and what Trump, China and India's Tata Steel have to do with it?</a>
<h2>Is this a nationalisation of the steel plant?</h2>
While the bill gives the government control, it does not yet amount to full nationalisation. Business Secretary Jonathan Reynolds told Parliament that state ownership is still &ldquo;on the table&rdquo; and is possibly the &ldquo;likely option.&rdquo; However, he clarified that &ldquo;this legislation does not transfer ownership to the government&rdquo;, and that step would need further action.
No private firm has stepped forward to invest in the plant, and ministers fear that shutting it down would damage the UK&rsquo;s economic future.
<h2>What&rsquo;s going on with Jingye?</h2>
Chinese company Jingye bought British Steel in 2020, claiming to have invested over &pound;1.2 billion to keep it running. However, the firm says the Scunthorpe site is now losing about &pound;700,000 a day and is no longer financially viable.
Reynolds said that Jingye wanted to supply the plant with slab steel from China instead of continuing full operations in the UK. He also revealed that the firm asked the government to hand over &ldquo;hundreds of millions of pounds&rdquo; without restrictions and refused a condition to keep the blast furnaces in working condition.
According to Reynolds, &ldquo;the effective market value of this company is zero.&rdquo;
<h2>What powers does the new law grant?</h2>
The bill gives the government the authority to take control of the plant&rsquo;s assets if the company does not follow orders to keep the furnaces running. It even includes criminal penalties if executives fail to comply. This strong intervention shows how seriously the government is treating the threat to the UK&rsquo;s steel industry.
<h2>Why is Scunthorpe so important?</h2>
Scunthorpe&rsquo;s steelworks is now the last place in Britain that can make virgin steel. The process uses raw materials rather than recycled metal, producing higher quality steel needed for large-scale building projects and railway infrastructure.
Since Tata shut its blast furnace in Port Talbot last year, Scunthorpe has been the only remaining site of its kind. British Steel says US tariffs imposed by President Donald Trump added to the plant&rsquo;s financial problems.
British Steel traces its roots back to the Industrial Revolution, but it was formally established in 1967 when the Labour government nationalised the industry. At the time, nearly 270,000 people worked in the sector. The Scunthorpe plant has stood through many changes, but Saturday&rsquo;s emergency law may decide whether it remains part of Britain&rsquo;s future.

World: This decision gives the government power to step in and take control of the British Steel plant in Scunthorpe, currently owned by a Chinese firm.

The UK government has passed an emergency law to prevent the shutdown of the last factory in the country that can produce virgin steel, steel made from raw materials rather than recycled scrap. This decision gives the government power to step in and take control of the British Steel plant in Scunthorpe, currently owned by a Chinese firm. Why was the law passed? On Saturday, in an unusual weekend session, MPs approved the Steel Industry (Special Measures) Bill without any resistance. The law aims to stop the closure of the vital Scunthorpe plant, which employs several thousand people and plays a key role in the construction and rail sectors. Watch: UK recalls Parliament as British Steel faces daily £700,000 loss, govt aims to take control Prime Minister Keir Starmer said the government had to act quickly to stop the blast furnaces from being turned off and protect what remains of the UK’s steel-making capabilities. Speaking to steelworkers in a nearby village hall, he said the move was “in the national interest.” “The most important thing is we’ve got control of the site,” Starmer said. “We can make the decisions about what happens, and that means that those blast furnaces will stay on,” he added. The intervention follows recent protests at the plant. There were also reports on Saturday morning that workers had stopped executives from the Chinese parent company Jingye from accessing key parts of the site. Also read: Explained: Why UK is rushing to save its last steel plant and what Trump, China and India's Tata Steel have to do with it? Is this a nationalisation of the steel plant? While the bill gives the government control, it does not yet amount to full nationalisation. Business Secretary Jonathan Reynolds told Parliament that state ownership is still “on the table” and is possibly the “likely option.” However, he clarified that “this legislation does not transfer ownership to the government”, and that step would need further action. No private firm has stepped forward to invest in the plant, and ministers fear that shutting it down would damage the UK’s economic future. What’s going on with Jingye? Chinese company Jingye bought British Steel in 2020, claiming to have invested over £1.2 billion to keep it running. However, the firm says the Scunthorpe site is now losing about £700,000 a day and is no longer financially viable. Reynolds said that Jingye wanted to supply the plant with slab steel from China instead of continuing full operations in the UK. He also revealed that the firm asked the government to hand over “hundreds of millions of pounds” without restrictions and refused a condition to keep the blast furnaces in working condition. According to Reynolds, “the effective market value of this company is zero.” What powers does the new law grant? The bill gives the government the authority to take control of the plant’s assets if the company does not follow orders to keep the furnaces running. It even includes criminal penalties if executives fail to comply. This strong intervention shows how seriously the government is treating the threat to the UK’s steel industry. Why is Scunthorpe so important? Scunthorpe’s steelworks is now the last place in Britain that can make virgin steel. The process uses raw materials rather than recycled metal, producing higher quality steel needed for large-scale building projects and railway infrastructure. Since Tata shut its blast furnace in Port Talbot last year, Scunthorpe has been the only remaining site of its kind. British Steel says US tariffs imposed by President Donald Trump added to the plant’s financial problems. British Steel traces its roots back to the Industrial Revolution, but it was formally established in 1967 when the Labour government nationalised the industry. At the time, nearly 270,000 people worked in the sector. The Scunthorpe plant has stood through many changes, but Saturday’s emergency law may decide whether it remains part of Britain’s future.

Why UK passed emergency law to save its last virgin steel plant? The British Steel Bill: Explained

The UK Parliament has been urgently recalled as British Steel faces financial turmoil, reportedly losing £700,000 every single day. The government is now weighing emergency legislation, including possible state ownership and co-investment, to save the iconic industry. Trump's tariffs have also worsened export challenges, further pushing the plant toward a potential shutdown.

UK recalls Parliament as British Steel faces daily £700,000 loss, govt aims to take control

A new bill aimed at securing the future of <a href="https://www.wionews.com/videos/uk-government-aims-to-take-control-of-british-steel-with-emergency-law-8954909" rel="dofollow noopener" target="_blank">British Steel&rsquo;s</a> Scunthorpe plant has passed its first stage in Parliament and is now heading to the House of Lords for further debate.
On Saturday, MPs returned from Easter recess to debate the Steel Industry (Special Measures) Bill. The legislation would give Business Secretary Jonathan Reynolds the authority to keep the vital steelworks operating while the government searches for a partner to help invest in the site.
<h2>UK&rsquo;s only source of virgin steel?</h2>
The Scunthorpe plant is home to Britain&rsquo;s last remaining blast furnaces capable of producing virgin steel, an essential material used in major infrastructure projects such as buildings and railway lines. Around 2,700 people work at the site, making up about 75% of British Steel&rsquo;s entire workforce.
Watch: <a href="https://www.wionews.com/videos/uk-government-aims-to-take-control-of-british-steel-with-emergency-law-8954909">UK Government aims to take control of British Steel with emergency law</a>
This urgent move follows a standoff with the plant&rsquo;s Chinese owner, Jingye, who threatened to shut down operations. The company argued that keeping the furnaces open was costing hundreds of thousands of pounds a day and was no longer &ldquo;financially sustainable&rdquo;.
They also resisted a government proposal to supply the plant with the raw materials needed to continue production, putting jobs and national infrastructure at risk.
<h2>Political pressure and the Trump factor</h2>
The intervention comes at a time when ministers are already facing growing calls to protect the UK steel industry, especially after US President Donald Trump imposed a 25% tariff on imported steel.
Also read: <a href="https://www.wionews.com/autonews/nippon-steel-confirms-ongoing-us-steel-acquisition-talks-with-washington-8884937" rel="dofollow noopener" target="_blank">Nippon steel confirms ongoing US steel acquisition talks with Washington</a>
Prime Minister Keir Starmer criticised Trump&rsquo;s trade policies, calling them the &ldquo;end of the globalisation era&rdquo;, and has vowed to show the benefits of &ldquo;active government&rdquo;. Taking control of the Scunthorpe site is expected to be seen as a step in that direction.
Given that the plant is owned by a Chinese company, the decision to step in may also win favour with the White House. Trump's America First policy has warned against close economic ties with China, especially in sensitive sectors.
&ldquo;There&rsquo;s no doubt that taking British Steel back into British hands from Chinese ownership will be received favorably by the Trump administration,&rdquo; said Sophia Gaston, UK Foreign Policy Lead at the Australian Strategic Policy Institute. &ldquo;Not least of all because the UK makes several steel components for the US defence industry.&rdquo;
<h2>British Steel's connection with India</h2>
British Steel was created in 2016 when Tata Steel sold its struggling long products division in Scunthorpe to private equity firm Greybull Capital for just &pound;1. The business was renamed and later fell into financial trouble, leading the government&rsquo;s insolvency service to step in during 2019.
Also read: <a href="https://www.wionews.com/world/canada-launches-wto-complaint-on-us-steel-aluminium-tariffs-8851737">Canada launches WTO complaint on US steel, aluminium tariffs</a>
It was then acquired by Chinese steelmaker Jingye in 2020, which has operated the site ever since.
The Scunthorpe facility remains a key part of the UK&rsquo;s industrial base, with its virgin steel considered more reliable and of higher quality than recycled steel, which is produced elsewhere in the country.
The next steps for the bill will be closely watched as the future of thousands of workers hangs in the balance.
(With inputs from agencies)

World: The legislation would give Business Secretary Jonathan Reynolds the authority to keep the vital steelworks operating while the government searches for a partner to help invest in the site.

A new bill aimed at securing the future of British Steel’s Scunthorpe plant has passed its first stage in Parliament and is now heading to the House of Lords for further debate. On Saturday, MPs returned from Easter recess to debate the Steel Industry (Special Measures) Bill. The legislation would give Business Secretary Jonathan Reynolds the authority to keep the vital steelworks operating while the government searches for a partner to help invest in the site. UK’s only source of virgin steel? The Scunthorpe plant is home to Britain’s last remaining blast furnaces capable of producing virgin steel, an essential material used in major infrastructure projects such as buildings and railway lines. Around 2,700 people work at the site, making up about 75% of British Steel’s entire workforce. Watch: UK Government aims to take control of British Steel with emergency law This urgent move follows a standoff with the plant’s Chinese owner, Jingye, who threatened to shut down operations. The company argued that keeping the furnaces open was costing hundreds of thousands of pounds a day and was no longer “financially sustainable”. They also resisted a government proposal to supply the plant with the raw materials needed to continue production, putting jobs and national infrastructure at risk. Political pressure and the Trump factor The intervention comes at a time when ministers are already facing growing calls to protect the UK steel industry, especially after US President Donald Trump imposed a 25% tariff on imported steel. Also read: Nippon steel confirms ongoing US steel acquisition talks with Washington Prime Minister Keir Starmer criticised Trump’s trade policies, calling them the “end of the globalisation era”, and has vowed to show the benefits of “active government”. Taking control of the Scunthorpe site is expected to be seen as a step in that direction. Given that the plant is owned by a Chinese company, the decision to step in may also win favour with the White House. Trump's America First policy has warned against close economic ties with China, especially in sensitive sectors. “There’s no doubt that taking British Steel back into British hands from Chinese ownership will be received favorably by the Trump administration,” said Sophia Gaston, UK Foreign Policy Lead at the Australian Strategic Policy Institute. “Not least of all because the UK makes several steel components for the US defence industry.” British Steel's connection with India British Steel was created in 2016 when Tata Steel sold its struggling long products division in Scunthorpe to private equity firm Greybull Capital for just £1. The business was renamed and later fell into financial trouble, leading the government’s insolvency service to step in during 2019. Also read: Canada launches WTO complaint on US steel, aluminium tariffs It was then acquired by Chinese steelmaker Jingye in 2020, which has operated the site ever since. The Scunthorpe facility remains a key part of the UK’s industrial base, with its virgin steel considered more reliable and of higher quality than recycled steel, which is produced elsewhere in the country. The next steps for the bill will be closely watched as the future of thousands of workers hangs in the balance. (With inputs from agencies)

Explained: Why UK is rushing to save its last steel plant and what Trump, China and India's Tata Steel have to do with it?

China's Jingye Group said on Monday it is in talks to buy British Steel in a deal estimated to be worth about 70 million pounds ($90 million) that could help protect thousands of British jobs and ease uncertainty over the troubled steelmaker.

A deal is not yet finalised, the company told Reuters following a BBC report of an imminent 70 million pound ($90 million) agreement.

A spokeswoman for Hebei-based Jingye Group said she was unclear about the value of the deal and unsure whether further details would be announced this week.

Gareth Stace, director general of industry lobby group UK Steel, also told Reuters the deal was not finalised.

"I would be surprised if it did not get finalised, but it's not a done deal," he said.

British Steel was put into compulsory liquidation on May 22 after Greybull Capital, which bought the firm for one pound from Tata Steel three years ago, failed to secure funding to continue its operations.

Turkey's military pension fund OYAK said in August it had reached a provisional agreement to take over British Steel but that deal has not been finalised.

China's Jingye Group said on Monday it is in talks to buy British Steel in a deal estimated to be worth about 70 million pounds ($90 million) that could help protect thousands of British jobs and ease uncertainty over the troubled steelmaker.

China's Jingye Group said on Monday it is in talks to buy British Steel in a deal estimated to be worth about 70 million pounds ($90 million) that could help protect thousands of British jobs and ease uncertainty over the troubled steelmaker. A deal is not yet finalised, the company told Reuters following a BBC report of an imminent 70 million pound ($90 million) agreement. A spokeswoman for Hebei-based Jingye Group said she was unclear about the value of the deal and unsure whether further details would be announced this week. Gareth Stace, director general of industry lobby group UK Steel, also told Reuters the deal was not finalised. "I would be surprised if it did not get finalised, but it's not a done deal," he said. British Steel was put into compulsory liquidation on May 22 after Greybull Capital, which bought the firm for one pound from Tata Steel three years ago, failed to secure funding to continue its operations. Turkey's military pension fund OYAK said in August it had reached a provisional agreement to take over British Steel but that deal has not been finalised.

China's Jingye Group in talks to buy British Steel

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Tensions rise as China holds key to UK Steel’s survival

Why UK passed emergency law to save its last virgin steel plant? The British Steel Bill: Explained

UK recalls Parliament as British Steel faces daily £700,000 loss, govt aims to take control

Explained: Why UK is rushing to save its last steel plant and what Trump, China and India's Tata Steel have to do with it?

China's Jingye Group in talks to buy British Steel