The UK government transferred British Steel to state ownership on July 16 in an effort to secure the future of domestic steel production in the country.
This decision came into force after the Law on the Nationalization of the Steel Industry received royal assent, and the Government concluded that the transfer of the company to state ownership was necessary in the national interests of the United Kingdom.
The government said nationalization would protect thousands of jobs, support industries that rely on British-made steel, and protect supply chains, major infrastructure projects, and national security. A new leadership team has also been appointed to stabilize the company and prepare it for a commercially sustainable, low-carbon future.
The Scunthorpe plant and domestic production will be preserved.
The government stressed that steel plays a crucial role in the UK economy, supporting major construction projects, transportation networks, energy infrastructure, the defense industry, and a modern industrial strategy. It added that maintaining production at British Steel's Scunthorpe plant is vital to maintaining the UK's domestic steelmaking capacity.
After assessing the company's importance to the economy, critical infrastructure and national security, the Business Minister concluded that state ownership was the most appropriate way to secure the future of British Steel and protect the country's steelmaking facilities and supply chains.
billions of pounds in support of the steel industry
The nationalization of the government's image steel support program was announced in March, which includes up to 2.5 billion pounds of investments. As part of this program, the government aims to ensure that 50% of the steel used in the UK is produced domestically.
The government also drew attention to the introduction of new trade measures that limit duty-free steel imports and reduce the increase in total quotas by 51%, a support package of 500 million pounds for the transition of Tata Steel to environmentally friendly steel production at its Port Talbot plant, as well as annual support for steel mills by hundreds of millions of pounds. within the framework of the Supercharger scheme and the British Industrial Competitiveness Improvement Program.
Starmer: We are securing the future of British steel
Prime Minister Keir Starmer called British steel one of the foundations of the country's industrial might, saying: "Today's decision secures the future of the steel industry.
