Britain has officially nationalised British Steel, completing a full state takeover of the loss-making company that was previously under Chinese ownership. The move, announced on Thursday, is aimed at protecting the future of domestic steel production in the United Kingdom, according to the government. The nationalisation represents the culmination of a series of interventions the British government has undertaken to support its steel sector, including a new set of tariffs and quotas designed to shield the industry from the dumping of cheap steel on international markets, as well as a tariff arrangement with the United States.
Outgoing Prime Minister Keir Starmer framed the decision in strategic terms. "Today's decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability," he said. The government first seized operational control of British Steel from its Chinese owners, Jingye, in April 2025, acting to prevent the closure of the Scunthorpe steelworks in northern England.
The intervention was designed to protect approximately 2,700 jobs at the plant, along with thousands more positions in the broader supply chain. The Scunthorpe facility is the country's last remaining primary steelmaking site and supplies the rail, construction, and automotive industries. In recent years, the plant has been under severe financial pressure due to elevated energy costs in Britain and a global glut of steel.
Business minister Peter Kyle told Times Radio that the government was spending over one million pounds a day to keep the facility operational. He estimated that the state had already spent £640 million, equivalent to approximately $866.1 million, to keep the plant running. "We need that virgin steel production because if this were to disappear, we would become at the mercy of international markets and supply from other countries," Kyle said.
He added that while the expenditure represented value for money for the British public, the business needed to be put on a forward footing. Legislation enabling the government to take ownership of British Steel received final parliamentary approval on Wednesday. The move came after the state failed to identify a private buyer for the company.
British Steel was originally privatised under Prime Minister Margaret Thatcher in 1988. Industry group UK Steel endorsed the nationalisation as the correct course of action, while stressing that the sector now required a long-term plan to restore British Steel to commercial sustainability. Source: Reuters, via Mining.com, July 16, 2026.
Source: mining.com