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UK is ready to give 300 million pounds to save British Steel

Europe / Ferrous metallurgy

Save our Steel: The UK government hopes this will convince the Chinese Jingye Corporation to stay in the UK business and continue to invest in the development of production, as well as make the steel plant itself more efficient in operation and therefore more viable.

UK is ready to give 300 million pounds to save British Steel
Фото: British Steel снова спасают от полной остановки и закрытия

Chancellor Jeremy Hunt is ready to provide a £300m financing package for struggling British Steel, the BBC has reported.

Funding will depend on British Steel's Chinese owner, who has pledged keep jobs at the company and make substantial additional investments.

Treasury sources said the money should be used for decarbonisation.

It is not clear when the decision will be announced.

The Department for Business, Energy and Industrial Strategy (Beis) said the government "recognizes the vital role that the steel industry plays in the UK economy in supporting local jobs and economic growth."

At British Steel employs thousands of people, and thousands more work for its suppliers.

But steel production has become very expensive, especially at current energy prices.

Ministers fear that if they do not act, h Part of the business could be shut down.

However, giving money to a wealthy foreign company to support British Steel would not be very good, especially since cheap, heavily subsidized imports from China are often cited as a key factor in triggering the crisis in the UK steel industry.

The support package, first reported on Sky News, will help British Steel replace blast furnaces in Scunthorpe, North Lincolnshire with electric alternatives.

Three years ago British Steel was bought out due to insolvency by the Chinese company Jingye, which became its third owner in the last four years.

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