According to reports in the British press, the measure expected to be announced as part of Wednesday’s King’s Speech aims to preserve the country’s last blast furnaces and secure the jobs of thousands of workers. However, details of the speech have not yet been finalized.
British Steel, which operates the Scunthorpe plant employing around 3,500 people, owns the last two operating blast furnaces in the UK. Although the company remains owned by Jingye Group, operational control was transferred to the government last year. Jingye had acquired the company out of bankruptcy in 2020.
Previously acquired by Greybull Capital in 2016, British Steel went bankrupt in 2019 before being taken over by Jingye. The Chinese group had initially planned to build electric arc furnaces in Scunthorpe and Teesside, but negotiations with the government failed to produce an agreement. In April 2025, the company attempted to shut down the blast furnaces.
The closure of these furnaces would have meant the end of the UK’s ability to produce steel from raw materials without relying on scrap metal, making government intervention a critical step.
Meanwhile, according to data from the National Audit Office, the cost of keeping British Steel operational had reached GBP 377 million as of January. If the current situation continues, that figure is expected to exceed GBP 1.5 billion by 2028.
Investor interest in the company also continues. Miami-based investor Michael Flacks stated in February that he was “closely interested” in acquiring the company. In addition, Sev.en Global Investments argued that British Steel and Speciality Steel UK should be sold to a single buyer, claiming that such a move could create the country’s largest steel producer.
Although the sector has shrunk compared to its peak in the 1970s, British Steel remains a critical employer for the Scunthorpe region. In addition, Network Rail sources around 95% of its rail supply needs from the plant.
Comments
No comment yet.