British Steel’s plant in Scunthorpe, Lincolnshire, employs 2,700 people, about three-quarters of the company’s entire workforce.
It is the last plant in the UK capable of producing virgin steel, which is used in major construction projects like new buildings and railways.
Two huge blast furnaces are used to produce the steel, which has fewer imperfections than the recycled steel made elsewhere in the country.
Following a period of financial instability, British Steel was taken over by the government’s insolvency service in 2019 and then acquired by Chinese steel-making firm Jingye the following year.
In late March 2025, Jingye said the plant was losing around £700,000 a day and launched a consultation on its closure.
The government held talks with Jingye aimed at keeping the plant operational.
After these appeared to have largely broken down, emergency legislation was fast-tracked through Parliament in a single day on Saturday – handing control of the plant to the government.
Jingye still owns the site, but the business secretary now has sweeping powers to control management and workers to make sure production continues.
This means British Steel has not been nationalised – when a government takes ownership and control of a company.
But Business Secretary Jonathan Reynolds acknowledged hat public ownership was “the likely option”.
While the government hopes to secure private investment to save the plant, ministers admit there are currently no companies willing to buy it.
Jingye said the blast furnaces were “no longer financially sustainable,” blaming “highly challenging” market conditions, tariffs and costs associated with transitioning to lower-carbon production techniques.