UK Government Nationalizes British Steel

The UK government has nationalized British Steel to safeguard the future of domestic steel production, completing the takeover of the company from its previous owner, China's Jingye Group.

Ministers said the move was necessary to protect the national interest. Outgoing Prime Minister Keir Starmer described British Steel as part of the country's identity and a cornerstone of its industrial base. He said the takeover would secure the future of steelmaking, protect skilled jobs and preserve strategically important production capacity.

The government assumed operational control of the company in April 2025 to prevent the closure of the Scunthorpe steelworks in northern England. The intervention safeguarded about 2,700 jobs at the plant and thousands more across the supply chain.

Scunthorpe is the UK's last producer of primary steel, supplying the rail, construction and automotive industries. In recent years, however, the business has struggled with high energy costs and a global oversupply of steel.

After failing to find a private buyer, the government announced in May that it would take full ownership of the company. The new management says its priorities are stabilizing production, improving workplace safety, maintaining output and transforming British Steel into a commercially viable low-carbon business.

(Reuters, bak)