Britain's Fight to Keep the Flames of Virgin Steel Alive

Britain has taken control of its last virgin steel producer to secure raw materials and keep the Scunthorpe furnaces operational after its Chinese owners threatened closure. The move risks diplomatic tensions with China. The government has ensured supply shipments and appointed interim leadership for continuity.

The British government has taken operational control of British Steel to prevent the shutdown of its Scunthorpe plant, the last bastion of virgin steel production in the country. The intervention came after the plant's Chinese owner, Jingye Group, planned to close the furnaces following a rejected funding proposal.

Parliament was recalled over the weekend to pass emergency legislation, allowing the government to direct company operations and ensure steady raw material supply. Two shipments containing iron ore and coking coal have docked, and an interim leadership team has been appointed to maintain continuity.

This decisive action may strain UK-China relations, as tensions rise over fair business practices. British Steel, crucial for infrastructure sectors, faces challenges amid a global market glut and increased energy costs, compounded by recent U.S. tariffs. Nationalization of the plant is now being considered.

(With inputs from agencies.)