“Today’s decision secures the future of steel production in the United Kingdom, protects skilled jobs, and preserves a vital national capability,” said UK Prime Minister Sir Keir Starmer.
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In 2020, Jingye, which acquired British Steel, lost control of the company last April when Starmer’s government intervened in the struggling company’s operations as it faced bankruptcy.
Business Secretary Peter Kyle said the government intervened last year “to keep the furnaces running and prevent a chaotic closure that would have threatened steel production, supply chains, and thousands of jobs.”
“Since then, ministers and officials have been working intensively to find a long-term solution for this company,” he added.
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In May, Starmer announced legislation aimed at fully nationalizing British Steel – the country’s last factory capable of producing steel from scratch.
The nationalization came after Jingye announced that the company operating in northern England was no longer financially viable. Nationalization means British Steel becomes government-owned again for the first time since 1988. London viewed the potential closure of the factory as a threat to Britain’s long-term economic security.
