Parliament has passed emergency legislation safeguarding Britain’s steel industry, after what ministers described as an attempt by Chinese-owned British Steel to shut down the country’s last remaining blast furnaces without warning.
Business and Trade Secretary Jonathan Reynolds told MPs in the House of Commons on Saturday that the government had “no choice” but to intervene following what he characterised as an “unilateral” and “irrevocable” attempt by British Steel’s parent company, Jingye, to close primary steelmaking at the Scunthorpe site.
“We could not, will not, and never will, stand idly by while heat seeps from the UK’s remaining blast furnaces without any planning, any due process, or any respect for the consequences,” Reynolds told Parliament, in a dramatic opening statement that underscored the urgency of the situation.
The emergency Steel Industry (Special Measures) Bill passed swiftly through both Houses of Parliament on Saturday and is now awaiting Royal Assent. It will become law at midnight.
According to Reynolds, the government had been negotiating with Jingye in good faith, offering substantial support to maintain blast furnace operations. However, he said the Chinese-owned firm made excessive demands and then sought to cancel raw material purchases essential to keeping the furnaces running.
“The British Government offered to purchase raw materials in a way that would have ensured no losses whatsoever for Jingye,” he said. “Instead, Jingye demanded hundreds of millions of pounds be transferred without conditions, risking the money and potentially other assets being moved directly to China.”
The situation escalated dramatically earlier in the day when workers at the Scunthorpe site reportedly blocked Chinese executives from entering sensitive areas of the plant. The Telegraph reported that the confrontation unfolded around 8am on Saturday morning, just hours before MPs convened for the emergency debate.
Sources told the paper that the workers feared the delegation was there to initiate a rapid shutdown of the blast furnaces. Humberside Police were called to the scene following reports of a potential breach of the peace. The Chinese delegation subsequently withdrew from the site.
The incident highlights growing tensions between British industrial interests and overseas ownership of critical infrastructure. British Steel, acquired by China’s Jingye Group in 2020, operates one of the UK’s last remaining producers of virgin steel—used in railways, construction, and major infrastructure projects.
Reynolds praised MPs across the political divide for supporting the emergency measures, and credited fellow ministers, including the Prime Minister, Chancellor, and Home Secretary, for enabling the response. He also recognised the advocacy of MPs representing steelmaking communities in Lincolnshire and Teesside.
The passage of the new legislation gives the government sweeping powers to secure the site and ensure continued operation while longer-term plans for the industry are assessed. It comes just weeks after the Spring Budget pledged dedicated funds for British steel and industrial strategy.
In Parliament, Reynolds made it clear that this intervention was not just economic, but strategic: “This is unequivocally in our national interest,” he said.
The government has yet to detail what operational steps will follow the new legislation, but industry sources expect the blast furnaces to be kept operational under temporary oversight, with longer-term stewardship arrangements now being explored.
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I don’t often support Labour.
But I applaud this, and the PM. The correct decision.
When will we learn to keep strategic assets under UK ownership.
Seems to me this was just another move in China’s long term mercantile war with the west, enabled by the stupid Tories agreeing to the sell off in the first place.
Certainly sounds as if they simply wanted to switch off the blast furnaces. Letting them cool down basically destroys the lining – expensive job relining a blast furnace. Industrial vandalism and a clever way to undermine our national industrial and infrastructure supply chains.
Cheers CR
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Most steel makers around the world have special arrangements with workers & unions, whereby blast furnaces are never allowed to go cold. Even in industrial disputes, the blast furnaces are kept above the critical level. You could be looking at 6 months or more to bring a single furnace back online from cold if unplanned. Re-lining is usually a planned event
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The government obviously doesn’t consider water a critical national resource does it? It is quite happy for Chinese and other foreign nations to own UK water companies, destroy the environment, poison the water, break the law and cause the destruction of internationally important sites – but they take zero action. This saving of blast furnaces seems an 11th hour desperation measure because it appears successive UK governments have forgotten how to strategize & plan – in short they have forgotten how to govern – handing their sovereign power to quangos instead. These quangos are little more than lunch clubs creating revolving doors into the boardroom s of the companies they are supposed to be regulating. We have more MP’s than ever but can’t even do the basics right!
Nonsense. A bit off topic LB but quangos tend to be quite useful when controlling industry by ensuring everyone follows the legislation (as long as the legislation is up to spec). Clearly you didn’t notice the toxic nature of the water in Paris during the olympics. Water management is expensive for every country and nationalised water management prior to privatisation was a complete mess. Now there is a vast quantity of investment which is putting up prices probably for decades to come but that is the cost of doing business.
Reality is that waste water management was worse before privatisation.
Ironically now the tidal Thames is much better as the super sewer is in action.
Part of the issue is that small local sewerage works are overwhelmed by storm flows of rainwater.
Why is it that we allow households to chuck rainwater from roofs, which is easily collectible, into sewers to overwhelm sewerage works? Why are there not grants to recycle water at home and in blocks of flats? This would massively alleviate water usage as you don’t need drinking water to flush a toilet!
Absolutely agree been saying it for years Water and energy …everything else can come from those .without those we are buggered.
Water is sacrosanct.
Totally agree with the sentiment and a good day for the people of Scunthorpe and the country as a whole. Now we need to invest in new more efficient plant and stop countries such as dumping cheap steel into the U.K. It is a form of economic warfare that we have been blind to for far too long.
I’m glad we finally got past the thatcher era Laissez-faire, some times as with railways nationalisation is the best option and in this instance it was a clear example of a Chinese state owned company trying to screw up a British industrial asset. I think we should now keep British steel under UK government ownership and rebuild its furnace to use electricity. We should eventually have some of the cheapest electricity prices in Europe once we get rid of gas and rely on wind power. At least that way we will be locking in an eventual economic advantage that can one day be privatised when market conditions allow.
This is what we did with Rolls Royce and BAE back in the day.
I’m glad a British government finally grew a pair and did this.
You cannot rely on wind. Please show me a country that does. My country Australia certainly cannot rely on solar and wind. The nationalisation is pointless in the long term without cancelling the net zero con.
We have the world’s proven number one wind resource in Orkney and north west Scotland. For industrial processes the most important factor is cost and not consistency. You turn the furnace in when it’s windy an off when it’s not. You can do the same with a bunch of other process like electrolysis and smelting.
That way you can turn the second cheapest form of energy known to man (wind) into a long term economic advantage that allows you to build out an industrial basis (steel, aluminium and hydrogen)
You can’t make steel from iron ore with intermittent wind generated electricity. Smelting is a continuous process that needs coking coal. Despite an abundance of coal reserves, UK producers are forced to import coal because of politicians’ moronic obsession with net zero. More generally, until we expand nuclear generation to at least French levels, we will continue to rely on gas for back up.
Sorry but I just read what you wrote and have to question your Superior knowledge that you seem to share on every single subject here… just for a bit of basic info for you, You can’t turn the furnaces on and off.
Probably best you stay silent on most articles unless you actually know wtf you are on about.
You can’t turn steel/iron furnaces on & off whenever you like. Electric arc furnaces are a real thing, but they aren’t arc welders. Green Hydrogen is different in that you can store hydrogen to use later (but hydrogen powered furnaces are still at the research/trial phase). Storing wind is rather limited (compressed air) & currently storing electricity is also rather limited (pumped hydro excepted), for industrial purposes. There is this strange idea that you can swap from non renewable to renewable at the click of a switch for industry like you can for homes. Some you can, some you can’t. You turn off the power to a ceramics furnace (gas or electric), at the wrong time, everything in there is a write off. What is that steel maker going to do with that 100 staff they have on the floor when the wind stops. What about the next shift? What if the wind doesn’t blow for a week? 3 shifts a day for a week? Who’s going to pay for this? You?
If it was that simple it would have already been done. There are much brighter people than you & I that have been working on this stuff for years. It’s like saying electric vehicles are the saviour while ignoring what it takes to make the lithium based batteries.
Again if you use google you will find that you very much can use an electric Ark furness EAF to produce steel. An EAF can be switched on and off unlike a traditional blast furness, it can be powered by electricity from renewable energy even if it’s intermittent like wind and an EAF can use iron ore in the form of Direct Reduced Iron DRI.
If we are going to have heavy industry in the UK it needs to make sense, we need to use the advantages we have like very skilled labour, very cheap wind energy and the ability to invest in the very best technology as opposed to trying to compete against third world countries using old technology and having to rely on either government subsidies, bad environmental standards or low labour costs to prop it up.
Nicely avoided perceived embarrassment there.
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Wind energy is unreliable, always will be.
That’s why they invented batteries.
I suggest you spend a bit of time researching batteries, types, who makes them, where the raw materials come from, what is done to extract the raw materials, the processing of these raw materials, the disposal of spent batteries, the health & safety aspects of all this (especially for the extraction & processing side). You would never drive a current electric vehicle again. It’s that bad.
Have you never wondered why so few Li batteries are made in Western countries?
That would be some big battery bank to power an induction or ark furnace…..have you any idea how much electricity those things need?
You are not going to be powering that from a few containers of old automotive batteries!
Small modular reactors.
To rely on wind is a bit risky. however a combination of nuclear, wind, solar and tidal should do the trick. If we can ever get tidal to work well then we could be on to a winner as the Bristol Channel and Pentland Firth could produce massive amounts of electricity.
As for bringing virgin steel and for that matter all steel production back under UK control is a good move. If we the UK can upgrade the furnaces we should. Possibly the Scunthorpe plant could concentrate on producing steel for MoD use, rail and national infrastructure use. By producing enough to fulfil government requirements would mean that we would not need to import steel. BAE, Babcock, BMT and Forgemasters; Rheinmetall Telford, GD S.Wales for example could give the steel tech requirments to Scunthorpe and they produce what is needed. Non cricical steels/Alloys could come from Port Talbot. This would be the MoD use of the steel plants, then there are bridges to be built, track to be laid, nuclear powerplants under construction all needing steel and all HMG projects. I am not saying that these projects would be enough to keep the plants at full production but they would be enough to keep the plants ticking over, anything that they sell to the private sector would be profits.
However, here is the sting in the tail. If the steel plants do come under full government control don’t let the unions go mad and go on strike every five minutes for this that or the other. The workers should be well treated and have pay increases according to how well the plant does.
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As I understand it, the requirements for producing long steel as against flat steel are somewhat different. ie a factory setup to produce steel for railways is not configured to produce steel plate for warships. So you need to look at what it is setup to produce & if that is what you want (now or in the future). If in the future, you need to consider if you want to pay to keep it, bearing in mind trying to recreate it later can be sometimes near impossible.
Post processing is one part of it but you also have to think of the costs of producing tiny batches of loads of specific grades of steels.
That is why so much warship steel is imported – various specialist grades.
We could make it but would be stupidly uneconomic.
It is best we preserve a bulk capacity and use it to make whatever makes economic sense so in time of crisis we can look after ourselves. If we get to a war situation it will be like COVID vaccine again with normal supply chains destroyed overnight.
Hi Jim Electric Arc Furnaces have their uses which is why 2 new ones are being built at Port Talbot but they are far more suitable for recycling / smelting existing steel (scrap) than producing Green Steel.
However there is a much better way of using Electricity produced by Wind, Nuclear or Whatever to produce green steel and the nice thing is it’s storable and far easier to transport than via the Grid.
Quite simply you do what Sweden is doing, you use the Electricity to produce Hydrogen from water and upgrade the existing Gas network to transport it to the Furnaces. Do some reading on Swedish Green Steel or Germanys ThyssenKrupp, they are already way ahead of us but IMHO Hydrogen is the ideal future Green power source for lots of things.
It’s the ultimate bit of recycling you use Electricity / Electrolysis to produce Hydrogen and Oxygen from water, pump it down the existing gas network and when you burn it you get heat and water with zero emissions.
For many years now I been of the opinion that EV is a really dumb idea, too heavy, reliant on Lithium and just plain environmentally dangerous (Lithium cannot be recycled). We use Electricity for lighting and electric appliances but use Hydrogen for heating, transport and heavy industrial processes. Most modern Gas Boilers are now configured for Duel Fuel, methane or Hydrogen, you can adapt filling stations for cars and our transport industry is fine as we still use internal combustion engines.
If it was up to me we would have wind farms and Nuclear SMR clusters close together to feed the grid and produce Hydrogen.
And the great thing is we in U.K. are way ahead of just about everyone else in developing Hydrogen powered internal combustion engines for practical purposes. JCB here in Derbyshire is even testing Buses, Trucks, Train Engines and their Yellow Diggers with Hydrogen.
Go on what’s not to like. 🤷🏼♂️
The World Bank has done a lot of work on PV potential by country, they excluded those countries that are near the Artic and if all the others Sweden and UK were the least suitable. Yes you will get Electricity but in a 25 year life cycle that power doesn’t cover the power used to produce the PV panels in the first place. Go do some digging World Bank and Solar panels, it’s interesting.
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Agreed mate. How could they not see his coming. We should have been building a brand new virgin steel plant 10 years ago. State of the art.Fit for the 2020s and decades beyond.
Sounds like a no brainer … but who would have paid ?
China by the sounds of it. But then, why would they want to?
Hopefully this would put the final nail in the coffin for the new Chinese super embassy in London. The size of the building on an old historic site will hopefully be refused. I believe the Chinese appeal sits with Ms Rayners office after the application was initially refused by the local borough Council.. Chinese government are clearly behind the decision to close this plant and I also read a Lib Dem MP refused entry into Hong Kong on a visit to see her son and newly born grandson. China clearly looking to turn the screw on UK in a vindictive way.
👍 Agreed
Agree.
The Chinese purchase of key national infrastructure is a means of undermining the country.
They know UK soverign steel production is a key requirement for every developed major economy
Just as China were courted to provide nuclear energy input by the foolish Tories.
Facts are we don’t need and have never needed China’s support to build nuclear. Rolls Royce could build 200 SMRs for the same price as Hinkley with much reduced whole life costs and much easier decommissioning and spent nuclear recycling.
China is not a friend of the UK or the western world, that much is certain.
UK government should purchase the Scunthorpe site and all governmental contracts for rail, buildings, shipping should use British steel
It’s crazy how countries and governments get sucked in by China (I know and lot is down to self interest and personal greed) but Chinas long term plan and goals are clear fir everyone to see. We have a policy in our house not to buy anything with Made in China on it. I get there’s somethings you can’t get away from like electronics, buy why feed their economy which in turn feeds their military and global ambitions. It’s like when I had some shutter blinds for my windows the guy said I could have wood ones from China or some made in UK but they cost 25% more, I’d always try to support British business it was a no brainer for me.
Ah yes the arrogant and stupid ‘call me Dave’ Cameron…along with his oik ‘Georgie Boy’ Osborne- a right pair of shysters.
Sold us out to the Chinese on the alter of Neoliberalism whom they courted with the Red Carpet Royal Gala treatment- I bet The Queen loved that!
Turning a blind eye to their human rights infringements -with bullshit stating drawing them into the Western EU sphere of influence would change their mindset and soften their approach.
Whilst at the same time introducing additional taxes on our own coal fired power stations far in excess of the agreed EU directives just to prove how ‘green ‘ he was – forcing early closures of that energy infrastructure.
I often wonder what incentives they may have had to push through those changes.
They both were , are , and forever will be , a right pair of wankers – The worst PM we’ve had in decades (well apart from Blair of course!)
This is, in a lot of ways an even bigger concern.
With a site that large they would have a small army of people intimidating and meddling – generally providing muscle for this kind of thing.
The Chinese simply don’t care that we know they are up to no good.
I’m surprised that an industrial accident wasn’t ‘arranged’ at Scunthorpe by the Chinese. Feed conveyors systems catastrophically fail etc….
Just been reading some update stories about the new embassy that have come out in the last few hours. Rachel Reeves did a visit to China a couple of weeks ago and since the The Met Police and Tower Hamlets council have withdrawn their objections. It’s now looking like Starmer and Reeves are pushing this through. When will we ever learn?
I think it will get stopped now.
Starmer has had to sniff some very strong coffee and find £500-£1Bn to deal with this mess.
Ridiculously short sighted if true and perhaps even subversive . I hope someone somewhere is checking on any financial incentives indirect of otherwise that may have been offered. In return.
I wouldn’t trust Rayner as far as I could throw her- Hopefully Starmers got her on a tight leash. TBH I’m surprised Green Commissar Miliband didn’t create a stink about the steel bill – anyone know how he voted?
Even since the issue at the Chinese embassy in Manchester we should have been tightening down on their subversive mechanisms (‘police stations’, university interference. etc.)
For several years post COVID they have been out in the cold somewhat and I really hoped we would continue (accelerate) that divergence but Labour are now actively courting them again (due to the black hole in the economy dontcha know !) so I will be keen to see what happens with that Embassy planning application. Don’t hold your breath!
Not a fan of Rayner myself, she’s got a lot to say for herself and her choice of language is not of the standards I expect from a senior politian in her position especially when using against politians of other countries with whom she seems to have issues with. Equally I don’t trust her either as I think she has her own agenda.
I think Millibrain’s power has waned – fortunately keeping g industry alive is now seen as more important.
Next problem is getting electricity prices down so people can afford to heat their homes. The current situation where even the middle classes can’t afford heating is ludicrous.
If energy prices came down onshore manufacturing would happen.
That really is as simple as stopping the regulatory capture and relating profits to costs.
Completely agree, I very seldom have much positive to say about Labour, but credit where credit is due, this is the right decision.
Got to love the hypocrisy of the tories saying labour have messed this up when under there tenure one of the largest steel plants in Europe at Redcar closed down and they didn’t lift a finger. It’s also funny how Kemi keeps saying she had a deal in the works but refuses to release the details of that deal.
Just so people don’t think I’m bias (which i kind of am) I still think labour should have done this sooner and I’m still expecting them to bugger it up.
Labour was quite happy for ICI to be broken up. They let Rover close down & the assets be sold cheaply to the Chinese. The reality is that both Labour & Conservative governments have not been interested in British Industry for many decades. They pay lip service, don hi vis vests for photoshoots, but will not put real effort into reshoring industrial capability. Energy prices for UK industry are way too high. If you really want clean, cost effective steel, then building in the UK a new Austrian/Korean Finex plant would be the way to go.
The Sorry history of Strikes and disruption put paid to many once thriving Industries. Ship Building, Car Making to name but two.
Not all Government issues.
True. Disasters are rarely one cause, more often a collection.
Many will be surprised at the speed at which Starmer moved to take control of the last operating blast furnaces in the UK. For all their bluster the Conservatives voted in favour, so did the Lords and at about half five the King gave Royal Assent.
The Chinese owners are clearly a shifty bunch. Fortunately the APNR system at the gates of the Scunthorpe plant had aleady been programmed to deny their cars access, before they turned up at 0800hrs to shut the blast furnaces down
An all-round first class result and all credit to those involved, including the Humberside police, who took time out from checking people’s Twitter accounts for bad grammar and attended to prevent a breach of the peace. Shame they couldn’t do the same when one of my friends in Hessle was burgled over Xmas
Wow, possible attempted ChiCom gray/grey (😉) zone warfare w/in UK sovereign territory. And you Brits thought you only needed to be concerned by Mad Vlad and his merry band of Orcs! The CRINKs are working in concert to destabilize the West. Amazing feat by staff to foil the attempt.
Please don’t lump all of us “Brits” in the same pile… there are many of us who have warned and lobbied against foreign ownership of strategic sovereign industries going back many decades.
Excellent! This is a milestone moment – the worm has turned. Hopefully marks the end of decades of foreign predators taking the country to the cleaners. Its refreshing to have a govt which governs in the national interest and for the common good.
Unfortunately we have a big cuckoo in the nest namely the City of London who make money from short term gains, which is the polar opposite of what is required to sustain and invest in industry of any type for long term economic success.
Our political class are in awe of the City but if it was managed properly I am sure it could provide a real lift to the rest of the economy but it would take real guts to take on the powerful vested interests that control much in the U.K..
The Royal Mail sale will likely make 30 million for city of London, that’s why they lobby for these big takeovers when they damage businesses by loading them with more debt.
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This is irony I hope. Your Labour government is paying a corrupt China aligned tin pot island to take one of your remaining strategic assets. They are cancelling formal inquiries into grooming gangs. Britain continues to be flooded by low IQ, low impulse control people who will add to the drain on your Exchequer. Their tax and fiscal policies seem to be designed to destroy business and industry. I could go on but you get the general drift. The Tories were indolent and useless. Labour are quite obviously working against your national interest.
Something of a broad brush critique. I do get your general drift but I don’t share the same perspective. I believe the Chagos deal which has been under negotiation for a long time has been agreed with the US. In common with Europe and ( even more so) the US, the UK is dealing with the consequences of large scale immigration, mostly caused by war, famine and Putin, by peoples of non western cultures. Integration into western culture will take more than one generation during which time we must hold fast to our values. The UK tax and fiscal policies are designed to shift economy from short term financial gain, rent seeking behaviours and consumer lead credit to a more sustainable supply side economy. This shift is designed to make us less vulnerable to external influences and more secure. Starmer’s objectives are not too different to Trumps – the national interest. I see the Times is reporting that the Royal Navy has been put on alert to make sure coke reaches the Scunthorpe blast furnaces in time.
The correct decision. Although it should have happened in November 24, when the National Security Intelligence Report highlighted the deliberate measures by the Chinese owners in running down the 30 day coking inventory. From that point, they ran it to 21, 14 and now 10 days, with the two furnaces turn down in operation on the 10th April. Its the only reason why the government acted.
A week of talking and a day of Parliament, that is all it took to turn a plan into law. Never let a Government tell you they can’t do something, Parliament is sovereign and it’s will is law, they simply won’t.
Brilliant to see such decisive action taken, and I hope it signals the start of a more engaged British State.
The stupid carbon tax and high energy costs have damaged what’s left of heavy industry. Time to stop hedge funds and private equity buying businesses, asset stripping and loading with debt. When repairing a roads and concrete work near Port Talbot they were using re-bar from Portugal, surely that has bigger carbon footprint. Without steel production and processing you can’t fight a major war.
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The Scunthorpe plant uses coking coal to heat the furnaces, not electricity.
We need to reopen a coking coal mine for fuel for Scunthorpe.
the coke ovens at Scunthorpe were closed in 2023. as far as I am aware there are no coke ovens left in the UK
Its a pity the government didn’t act at that point – death by a 1000 cuts …still better late than never I suppose.
Hopefully they will fully nationalise it now…fingers crossed.
Coke oven emit CO2z…..so that part was offshored…..couldn’t make it up really.
The Times is claiming that the Royal Navy has been put on alert to escort an essential coking coal cargo to Scunthorpe after MPs voted to seize control of British Steel. Quoting an unattributed report a “senior source” said the government was considering the extraordinary move to ensure the cargo reached the UK without being intercepted or redirected.
Apparently, the MoD said no decision had been taken on the Navy’s involvement and it is “unclear” whether ministers have made a formal request. After all, it is the weekend.
The industry minister is on telly, keeping quiet about how the coal getting delivered. Amazing to think navy maybe escorting the coal and allegations of management deliberately running down the furnace s.
Ideal job for a RIVER or RFA….
I sense a bit of Sarcasm !!!!
It also said the shipment was waiting at Immingham. Unless the Royal Navy have ships that can traverse the A180/M180, perhaps instead they should ring Road Haulage UK, or even Royal Mail!
Just a shame that we had 40 years of EU companies taking over UK businesses to shut them down that we didn’t respond to.
Beware of Russians & Chinese bearing gifts, or “investment”. Selling vital assets to enemies is insane. It’s a foot on our throat.
Glad HMG is doing something in the national interest for a change rather than selling off the family jewels.
Russia and China are holding African countries to ransom, now that their former colonial rulers have deserted them.
Totally agree with the UK rebuilding our assets however we must make our industry competative otherwise we will just have to indulge in the protectionist behavior that current the US are trying to achieve. I doubt it will work for them – why should it work for us.
No doubt the government have made the right decision, however I’m also in no doubt they want another private buyer so it’s off there hands .Could we fine ourselves in the same mess again ? HMG defence of the Realm comes frist 🙄 by handing over a steel industry to a foreign country really .Absolute idiots , please go and get help 🤔
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