British Steel's Scunthorpe works has been formally taken into public ownership after the Steel Industry (Nationalisation) Act received Royal Assent, expropriating the factory from Chinese owner Jingye.
Key facts
- British Steel's Scunthorpe steelworks has been officially nationalised.
- The move follows Royal Assent for the Steel Industry (Nationalisation) Act on Wednesday.
- The factory has been expropriated from China's Jingye, with a valuer to assess compensation.
- The government first stepped in 15 months ago to prevent closure and the loss of 4,000 jobs.
- Prime Minister Keir Starmer said the takeover was in the national interest.
The Scunthorpe steelworks has been officially brought under public ownership after the government used new powers passed this week, according to the BBC. The nationalisation formally takes the site out of the hands of its Chinese owner, Jingye.
The move comes 15 months after the government first stepped in to prevent the closure of the Scunthorpe works and the loss of 4,000 jobs, the Guardian reported. Ministers framed the takeover as a way to protect what they described as a vital UK steel supply.
The nationalisation was made possible by the Steel Industry (Nationalisation) Act, which received Royal Assent on Wednesday. Under the terms of the process, the factory has been expropriated from Jingye, and ministers will ask a valuer to assess the compensation owed to the former owner.
Prime Minister Keir Starmer said on Thursday that it was in the national interest for the government to take over the factory, according to the Guardian. The newspaper described the decision as one of the last significant actions overseen by him as prime minister.
The BBC reported that the site has now been officially nationalised under the new government powers, confirming the change in ownership of the Scunthorpe operation.
The government’s intervention brings to a conclusion a period of uncertainty over the future of the works that began when ministers first acted more than a year earlier to keep the plant running.
Why it matters
The Scunthorpe steelworks is a major employer and a significant part of the UK's domestic steel production, supporting thousands of jobs. Nationalisation marks a substantial state intervention in a strategic industry and shifts the site from foreign private ownership into public hands.
Frequently asked questions
Who previously owned British Steel's Scunthorpe works?
The Scunthorpe factory was owned by the Chinese company Jingye before it was expropriated and taken into public ownership.
How many jobs were at risk?
According to the Guardian, the government first stepped in 15 months ago to prevent the closure of the Scunthorpe steelworks and the loss of 4,000 jobs.
What law made the nationalisation possible?
The Steel Industry (Nationalisation) Act received Royal Assent on Wednesday, providing the powers used to bring the works into public ownership. Ministers will ask a valuer to assess compensation for the former owner.