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UK nationalizes British Steel, placing company under public ownership
The government said the move is intended to save thousands of jobs across British Steel’s supply chain and protect the UK’s remaining virgin steel capacity.
The UK government has taken British Steel into state ownership after the company’s nationalisation passed a public interest test, according to OilPrice.
Prime Minister and Business Secretary Peter Kyle said the decision was aimed at securing the future of UK steelmaking and maintaining production in the national interest, with the business department saying the new public ownership will save thousands of jobs at the steelmaker and in its supply chain.
The move follows new legislation that makes it easier for ministers to forcefully nationalise steel companies. British Steel, based in Scunthorpe, has appointed a revamped leadership team tasked with stabilising the business and developing a commercially sustainable future.
OilPrice also noted the nationalisation comes after a turbulent period for the UK’s largest steel producer, including failed talks over a potential funding package involving former owner Jingye, which led the Chinese company to effectively abandon the plant.