UK Government Uses Emergency Legislation to Save British Steel's Scunthorpe Plant, Protecting 2,700 Jobs

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Updated Apr 14, 2025, 07:23 AM

British Steel staff and civil servants are racing against time to prevent the permanent shutdown of Britain's last primary steelmaking plant in Scunthorpe, which employs 2,700 people. The government took control of the site over the weekend after passing emergency legislation, following the decision by the plant's Chinese owner, Jingye, to cancel future orders for essential raw materials like iron ore and coal, resulting in a daily loss of £700,000. The urgency stems from the need to keep the blast furnaces running, as a drop in temperature could lead to irreparable damage. The government is working to secure supplies of coking coal and iron ore, with shipments already in the UK and nearby the plant at Immingham Docks. The Department for Business and Trade is also ensuring that all staff at the plant continue to be paid. Business Secretary Jonathan Reynolds has emphasized the importance of steelmaking for the UK's national security and economic plans. He has stated that the government's intervention provides a chance to save the plant, though he could not guarantee the timely arrival of the necessary raw materials, which can take up to 45 days to arrive. Several companies, including Tata and Rainham Steel, have offered managerial support and raw materials to assist British Steel. The government is exploring all options, including reversing Jingye's decision to temporarily shut down one of the blast furnaces using a procedure known as a 'salamander tap', to keep the Scunthorpe plant operational.

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#British Steel #Britain #Scunthorpe #Chinese #Jingye #UK #Immingham Docks #Jonathan Reynolds #Tata #Rainham Steel

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Sources

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Giovanni Staunovo🛢

@staunovo

UK races to secure coal to keep British Steel furnaces operating Officials work to ensure shipments arrive quickly after emergency government intervention https://t.co/dumbeHaFR7

Times Radio

@TimesRadio

“The raw materials, the shipments have arrived. They're in the UK. They're nearby. There are questions about getting them into the blast furnaces.” Treasury minister @JamesMurray_ldn says officials on site are doing “everything they can” to keep blast furnaces running. https://t.co/ySd5qwv7Q7

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@ukpapers

🇬🇧 Rivals Join Race Against Time To Save Scunthorpe Blast Furnaces ▫Firm in race against time to get key materials as business secretary says no guarantee it will get what it needs ▫@jessicaelgot @jjpjolly ▫https://t.co/MIaqpDR9ZF #frontpagestoday #UK @guardian https://t.co/y4ZpZMrgVL