UK Government Intervenes to Save British Steel from Closure

The UK government rescued British Steel's Scunthorpe plant from closure, taking control from Chinese owner Jingye Group. A new law enables direct oversight to prevent massive job losses and maintain domestic steel production. Industry survival is crucial amid market conditions and US tariffs on imported steel.

The UK government has assumed control of British Steel's last remaining factory that produces steel from scratch, preventing its closure by Chinese owner Jingye Group. This emergency maneuver was legislated during a rare Saturday session of the UK Parliament.

Prime Minister Keir Starmer emphasized the strategic importance of the Scunthorpe plant's blast furnaces, especially after the recent imposition of a 25% tariff on imported steel by the US. Business Secretary Jonathan Reynolds now has the authority to manage the plant's operations, ensuring the continuation of employment and steel production.

This intervention prevents Britain from becoming the only G7 nation without the capacity for primary steel production. The move has been welcomed locally, marking a significant victory for the community and maintaining the town's long-standing steelmaking tradition.

(With inputs from agencies.)