The UK government is considering a plan for the development of domestic steel production
Major steelmaking enterprises in the United Kingdom have become increasingly dependent on financial support from the UK government this year, leading to calls for greater nationalization of the domestic steel sector.
In the first eight months of 2025, the UK's current labor department was forced to intervene to protect the future of the country's two leading steel mills, British Steel and Liberty Specialty Steels UK (SSUK).
In April, government ministers passed emergency legislation to take control of British Steel's Scunthorpe facilities after its Chinese owners, the Jingye Group, announced plans to close the company's blast furnaces due to financial losses of 700,000 pounds per day. The Department of Business and Trade is now also responsible for managing Liberty Steel's South Yorkshire, Rotherham and Stocksbridge divisions, after the High Court ordered the forced closure.
Interaction between problematic metallurgical enterprises
Government representatives report that their preferred option for the long-term future of both companies is to seek new private ownership, while reserving the right to keep them in public hands as a last resort if no buyer is found.
There have been rumors that the UK steel mills, which are currently receiving government support, may be sold as a single enterprise. History shows that there is a clear synergy between enterprises. All three companies were previously owned by Corus and then Tata Steel, before Tata sold the Scunthorpe plant to Greybull Capital in 2016 and the long products to Liberty Steel in 2016.
The previous consolidation of operations allowed Tata to sell wire rod and engineering center to domestic and foreign customers in Rotherham, Scunthorpe and Stocksbridge. Speciality Steels has also been able to secure some of British Steel's rolling lines via the EAF route, which is currently the preferred low-emission steel production method.
However, it was reported that all three steel mills were unprofitable at the time of Tata's exit from its UK business. Subsequent owners, competing with reduced global demand, cheap imports and high energy prices, were unable to restore the financial situation of the enterprises.
In a recent interview with BBC Radio, Kaye Ayoub, head of price analysis and forecasts at MEPS International, said that the long-term financial viability of British steel production remains in question. This is due to the high cost of steel production in the country.
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