British Steel is expected to be fully nationalized in the UK this week. After the government handed over the day-to-day operations of the loss-making company to its Chinese owner, Jingye Group, last year, a full nationalization is expected to be announced in the king's speech.
According to British press reports, the measures, which are expected to be announced during the king's speech on Wednesday, are aimed at preserving the last blast furnaces in the country and providing jobs to thousands of workers. However, the details of the speech have not yet been agreed. British Steel, which operates the Scunthorpe plant, which employs about 3,500 people, owns the last two operating blast furnaces in the UK. Although the company is still owned by the Jingye Group, operational control was transferred to the government last year. Jingye acquired the company after bankruptcy in 2020. Previously acquired by Greybull Capital in 2016, British Steel went bankrupt in 2019, after which it was absorbed by Jingye. Initially, the Chinese company planned to build electric arc furnaces in Scunthorpe and Teesside, but negotiations with the government did not lead to an agreement. In April 2025, the company tried to stop the blast furnaces. Closing these furnaces would mean ending the UK's ability to produce steel from raw materials without relying on scrap metal, which would make government intervention a critical step. Meanwhile, according to the National Audit Office, the cost of maintaining British furnaces in industrial production has increased. As of January, the volume of steel production reached 377 million pounds. If the current situation continues, this figure is expected to exceed 1.5 billion pounds by 2028. Investors' interest in the company will also remain. Miami-based investor Michael Flacks said in February that he was "very interested" in acquiring the company. In addition, Sev.en Global Investments argued that British Steel and Speciality Steel UK should be sold to the same buyer, arguing that such a move could lead to the creation of the country's largest steel producer. Although the sector has declined from its peak in the 1970s, British Steel remains the most important employer in the Scunthorpe region. In addition, Network Rail provides about 95% of its rail supply needs from the factory.Author: Editorial staff of SteelRadar
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