Ministers take control of Scunthorpe steelworks to prevent catastrophic furnace shutdown

The UK government is scrambling to keep British Steel’s Scunthorpe blast furnaces running after an emergency law handed it control of the crisis-hit site over the weekend.

With furnaces at risk of irreversible damage, ministers are racing to deliver critical raw materials—iron ore and coking coal—following accusations that the plant’s Chinese owner, Jingye Group, had been selling them off in the lead-up to a potential shutdown.

Business Secretary Jonathan Reynolds said his department was now “hard at work on the ground” to maintain operations at the Lincolnshire site, which employs 2,700 workers and is the last UK facility capable of producing virgin steel.

The urgency stems from the technical risks associated with cooling blast furnaces. If temperatures fall too far, the furnaces could suffer permanent damage. Restarting them is also prohibitively expensive and logistically difficult.

“We are doing everything possible to keep jobs going and furnaces burning,” Reynolds said in a statement on Monday.

In a coordinated response, dozens of businesses—including major steel players like Tata and Rainham Steel—have stepped in to offer supplies of raw materials. Officials are working to secure one critical shipment sitting just 30 miles away at Immingham Docks.

The emergency takeover followed the collapse of talks between the government and Jingye, who had branded the site “financially unsustainable,” citing daily losses of £700,000. The company began consultation on closing the blast furnaces in March.

According to Reynolds, Jingye rejected a £500 million government bailout, instead demanding more than double that figure with no firm commitment to keep the plant open. “It became clear Jingye was intent on closing the furnaces regardless of the support,” he said, suggesting their behaviour bordered on wilful neglect.

The government’s move, rushed through Parliament on Saturday, is being viewed as a critical intervention to preserve Britain’s industrial sovereignty. Without the Scunthorpe plant, the UK would become the only G7 nation unable to produce virgin steel—a strategic capability many in Whitehall view as vital to economic security.

On Sunday, Reynolds was pressed by the BBC’s Laura Kuenssberg on whether ministers could source the materials in time. He declined to give firm assurances but said the new legal powers gave the government the “opportunity” to act decisively.

The fast-tracked legislation grants the government control of the site and allows it to override corporate decisions to close or liquidate critical infrastructure. Though seen as a temporary measure, the move could mark a broader shift in how the UK handles key industrial assets.

The Conservative opposition has criticised Labour for waiting too long to act. Shadow business secretary Andrew Griffith supported the emergency law, calling it “the least worst option,” but insisted Labour should have intervened earlier to prevent the crisis from reaching this stage.

Local reaction has been a mix of relief and cautious optimism. The steelworks have been the economic heartbeat of Scunthorpe for generations, and the prospect of their shutdown has sparked fear across the community.

The government’s immediate challenge is logistical: how fast it can transport and load the essential fuel into the furnaces. Success will mean the difference between keeping Britain’s steelmaking flame alive or seeing it extinguished—perhaps permanently.

THE GUARDIAN

Network Rail has built a year-long stockpile of steel rails amid fears of disruption from British Steel’s Scunthorpe plant, which supplies over 80% of Britain’s rail infrastructure. The move follows Chinese owner Jingye Group’s plan to shut the site’s two blast furnaces and switch to cleaner electric arc furnaces, putting 2,700 jobs at risk. The UK government has intervened, ordering British Steel to continue operations and secure raw materials, citing national concerns over losing the ability to produce steel from iron ore. Network Rail’s contingency measures give it about six months to source alternative supplies from European firms like Voestalpine and Saarstahl, both of which already have flexible contracts. While British Steel insists electric arc furnaces will eventually meet rail production needs, the transition may take years and risks quality issues. Officials and industry leaders are urging the government to adopt a long-term strategy to protect steelmaking as a vital national industry.

THE INDEPENDENT

British Steel staff and government officials are racing to secure vital raw materials to keep the Scunthorpe blast furnaces operational, following an emergency government takeover of the site. Without urgent deliveries of coking coal and iron ore, the furnaces risk irreversible damage if cooled, potentially ending primary steelmaking in the UK. Jingye, British Steel’s Chinese owner, had ceased ordering and even begun selling off materials, prompting alarm. The government recalled Parliament on Saturday to pass emergency legislation enabling its intervention. Business Secretary Jonathan Reynolds said the move gave the UK a “chance” to save the industry, and dozens of companies, including Tata and Rainham Steel, have offered resources and managerial help. Talks on Monday aim to reverse furnace shutdowns, including the risky “salamander tap” process. While ministers hope for private investment to modernise the site, Reynolds acknowledged full nationalisation is the most likely short-term outcome, with long-term plans to co-invest in UK steel.

FINANCIAL TIMES

The UK government is urgently working to secure coal and iron ore supplies to keep British Steel’s blast furnaces at Scunthorpe operational after passing emergency legislation to seize control from Chinese owner Jingye. A coal shipment docked in Immingham on Sunday had been ordered but not paid for by Jingye, which had stopped purchasing and was selling off raw materials. Officials fear the furnaces could become inoperable if cooled, jeopardising Britain’s ability to produce steel from scratch and threatening 3,500 jobs. Business Secretary Jonathan Reynolds confirmed nationalisation is likely, as the company’s market value is “effectively zero.” Over a dozen companies, including Tata and Rainham Steel, have offered support. Ministers now control plant operations and are coordinating further material deliveries. Reynolds criticised the previous government for selling a strategic asset to a Chinese firm, calling Jingye a “bad actor,” and said the UK must reassess foreign involvement in critical industries like steel.