Britain Takes Charge of Steel: Secures Raw Materials Amid China Tensions

The UK government has taken control of British Steel, securing essential raw materials following a fallout with Chinese owners. This move prevents the shutdown of Scunthorpe's blast furnaces, essential for industries like rail and construction. The situation highlights tensions between the UK and China amidst global trade shifts.

The British government has assumed control of British Steel, ensuring it has the necessary raw materials to prevent the shutdown of blast furnaces at the Scunthorpe plant. This decision comes after Chinese owners, Jingye Group, rejected a government funding proposal, potentially risking Britain's steel production capabilities.

The intervention was prompted by a pressing need to maintain steel production for national security. Treasury department minister James Murray emphasized the critical nature of the situation, stating that without governmental action, the furnaces would have closed. The furnaces currently incur losses of £700,000 daily, underlining the urgency of the government's decision.

The move has strained UK-China relations, with China calling for fair treatment of its companies. The closure of the plant, key to Britain's rail and construction industries, would force reliance on imports amid global trade tensions. The government is considering nationalizing the plant to safeguard its strategic steel sector.

(With inputs from agencies.)