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UK nationalizes British Steel, placing Scunthorpe plant under public ownership
The government took control of the Scunthorpe operations after earlier intervention in 2025, citing the need to protect steelmaking jobs and a foundation industry.
British Steel has been brought into public ownership after the UK government used new powers passed by Parliament, putting the Scunthorpe steelworks under state control to protect UK steelmaking, the BBC Business reports. The plant employs roughly 2,700 people in Scunthorpe and supports other industries in north Lincolnshire, according to the outlet.
Prime Minister Sir Keir Starmer said the decision secures the future of steelmaking in the UK, protects skilled jobs, and safeguards a vital national capability. Business Secretary Peter Kyle said the company now belongs to the British public, with the focus on stabilising the business and building a sustainable, competitive, and decarbonised steel sector.
The UK government took control of British Steel operations in Scunthorpe last year, even though the business had remained owned by China-based Jingye Group. Jingye has said it has begun the process of seeking compensation for nationalisation, after previously warning the business was losing £700,000 a day, while the UK government said it could limit or refuse compensation.
Legislation passed on Wednesday allows the government to place the steel industry into public ownership where it passes a public interest test. The BBC notes the National Audit Office reported in March that the Scunthorpe steelworks was costing the government about £1.3 million a day, and the government seized control of the plant in April 2025 after Jingye flagged the potential closure of the last two remaining blast furnaces.