The Business Secretary has accused a Chinese firm of trying to shut down the British steel industry in a dramatic day in Parliament. Jonathan Reynolds hit out at Jingye, the owners of British Steel, as MPs passed unprecedented legislation giving ministers powers to take the company into Government hands.
MPs were recalled for a Saturday sitting for the first time since the Falklands War to prevent the closure of Britain’s last remaining primary steelworks in Scunthorpe. The move came after a breakdown in negotiations with Jingye, the Chinese company that purchased British Steel in 2020.
The emergency laws, which passed unopposed on Saturday, will allow the Government to step in and keep the Scunthorpe plant open, with executives facing criminal penalties if they fail to comply. The Business Secretary has issued instructions to British Steel under the new legislation in an effort to save the Scunthorpe blast furnace.
Mr Reynolds accused Jingye of planning to “irrevocably and unilaterally” close down primary steelmaking in the UK, claiming the company had failed to act “in good faith” by refusing to keep buying the raw materials needed to keep the Scunthorpe plant firing. The Government offered to purchase the necessary raw materials, but this was rejected by Jingye, which made a counteroffer worth “hundreds of millions of pounds”.
The Steel Industry (Special Measures) Bill will provide the Government “with the power to direct steel companies in England, which we will use to protect the Scunthorpe site”. It stops short of nationalising British Steel, but allows ministers to instruct the company to keep the plant running.
Ministers remain hopeful that they can secure private investment to save the plant, which would avoid the need for a complete state takeover. But Mr Reynolds said public ownership “remains on the table” and may well be the “likely option” for British Steel.
