Crisis in British Steel: Urgent Measures to Save Scunthorpe

British lawmakers held an emergency vote to keep British Steel's Scunthorpe blast furnaces operational, as full nationalisation is considered likely. The company faces financial challenges amidst global market pressures and tariff impacts. A potential state rescue could avert the furnaces' closure, maintaining Britain's capability to produce virgin steel.

In a dramatic move, British lawmakers returned from Easter recess on Saturday to cast a critical vote aimed at keeping British Steel's operations afloat. The government is leaning towards full nationalisation of the Scunthorpe plant, the UK's last producer of virgin steel.

Owned by China's Jingye Group, the plant employs 3,500 workers, whose future hangs in the balance. The inability to secure a funding deal for transitioning to greener production methods has put the facility at risk. Lawmakers were urgently recalled to enact a law granting the government authority to manage British Steel's affairs directly.

The decision follows a loss of 700,000 pounds a day at the furnaces, which are under threat due to rising energy costs and U.S. import tariffs. Business minister Jonathan Reynolds highlighted the precarious situation and did not rule out the possibility of transferring ownership to the state, emphasizing the need for immediate legislative action to explore sustainable future options.

(With inputs from agencies.)