NEWS STORY : UK Government Secures Raw Materials to Sustain British Steel Operations
STORY
The UK government has taken decisive action to secure the future of British Steel by obtaining essential raw materials to keep the company’s blast furnaces operational. This move follows the enactment of emergency legislation aimed at safeguarding the nation’s steel production capabilities. Business and Trade Secretary Jonathan Reynolds announced that shipments of coke and iron ore pellets from the United States have arrived at Immingham docks. These materials are being transported to British Steel’s Scunthorpe site, ensuring the continuation of steel production in the immediate term.
The government’s intervention comes in response to the financial difficulties faced by British Steel’s Chinese owner, Jingye Group, which had ceased ordering necessary raw materials. To prevent the shutdown of the UK’s last remaining blast furnaces, Parliament passed the Steel Industry (Special Measures) Act 2025. This legislation grants the government authority to direct company operations and, if necessary, assume control to maintain production.
Reynolds emphasised the strategic importance of domestic steel production, stating, “Our industries depend on UK steel, and—thanks to our Plan for Change—demand is set to shoot up: helping build the 1.5 million homes, railways, schools and hospitals we need to usher in a decade of national renewal.” In addition to securing raw materials, the government has appointed Allan Bell as interim Chief Executive Officer and Lisa Coulson as interim Chief Commercial Officer to oversee operations during this critical period. The situation has also drawn international attention. China’s Foreign Ministry has urged the UK to treat Jingye Group fairly, cautioning against politicising the issue and emphasising the importance of safeguarding investor confidence.
