Nationalization of British Steel continues as talks in Jinye fail
As it became known to Kallanish, the nationalization of British Steel seems to continue after the British government announced the adoption of legislation that would give it the authority to transfer the steel mill to state ownership.
British Prime Minister Keir Starmer made the comments in a speech on Monday morning.
"Steel is the main sovereign potential. Strong countries in a world like this need to produce steel. That's why we support steel production in Port Talbot and across the UK. But in Scunthorpe, we negotiated with the current owner, and a commercial sale proved impossible. And now you can be tested for compliance with public interests," he said.
"So, I can announce that a bill will be introduced this week that will empower the government, in accordance with this criterion, to ensure full national ownership of British Steel. State ownership is in the public interest," Starmer added.
The public interest test takes into account factors such as national security, maintaining critical national infrastructure, and supporting the economy.
The government's statement notes that it does not believe in the possibility of reaching an agreement with the current owners that would ensure an acceptable price-performance ratio for taxpayers.
The new legislation will form part of the King's speech, which will take place on Wednesday.
The statement adds that "the primary legislation will provide the government with an opportunity to protect the UK's steelmaking facilities and avoid a sudden shutdown of production at Scunthorpe, while British Steel considers options that will help implement the government's steel strategy."
The UK government took control of the Scunthorpe plant on April 12, 2025, and has spent at least 419 million pounds ($570 million) on working capital, raw materials, and wages as of March 2026.
Kallanish.com