British Steel: Reports of 'nationalisation plans' amid concerns over firm with South Yorkshire site

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British Steel could be re-nationalised, according to reports which could affect South Yorkshire workers.

The company, which has its main manufacturing base in Scunthorpe, runs a research and development site at Catcliffe in the Advanced Manufacturing Park.

Possible nationalisation plans are reportedly being considered by the Government amid uncertainty about the company's future.

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Ministers have been locked in talks with the company's Chinese owners, Jingye, over a potential rescue plan.

British Steel could be re-nationalised, according to reports. PIC: Scott MerryleesBritish Steel could be re-nationalised, according to reports. PIC: Scott Merrylees
British Steel could be re-nationalised, according to reports. PIC: Scott Merrylees

British Steel announced it would close its blast furnaces in Scunthorpe last year, replacing them with a less polluting electric arc furnace if it received "appropriate support" from the Government.

But reports in The Guardian and The Daily Telegraph suggested Business Secretary Jonathan Reynolds was now considering a range of options including taking the company back into public ownership for the first time since 1988.

A Government source told The Guardian that renationalisation was "the least attractive option" due to its significant cost, but said it would be "negligent not to look at it".

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Trade unions, however, were more supportive of the prospect of renationalisation.

Charlotte Brumpton-Childs, national officer for the GMB union, said: "Recent history has shown we must retain control over crucial industries like steel.

"Leaving domestic production to the whims of the open market is sheer folly. Rather than forking out billions of taxpayer cash to reward private sector failure, the money should be used to renationalise our once proud steel sector."

The British Steel Research and Development site at Catcliffe. Photo: GoogleThe British Steel Research and Development site at Catcliffe. Photo: Google
The British Steel Research and Development site at Catcliffe. Photo: Google | Google

Unite's general secretary, Sharon Graham , argued that steel should be designated as "critical infrastructure" and accused previous governments of "selling the family silver" by privatising companies such as British Steel .

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She said: "It is not radical to build a programme where we own our own critical infrastructure - including industries like energy and water."

It would not be the first nationalisation in the steel industry in recent years. The Conservatives brought Sheffield Forgemasters into public ownership in 2021.

Before the election, Labour pledged to make the UK a "world leader in clean, green steel", and Sir Keir Starmer described the industry as part of "the fabric of our society" in places including Scunthorpe.

South Yorkshire still has major steelworks including sites at Stocksbridge and Rotherham, owned by Liberty Steel. There is also Marcegaglia Stainless, which bought three steelmaking sites in Sheffield and Rotherham from Finnish firm Outokumpu

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In Government, Labour announced a £500 million package to support Tata's steelworks in Port Talbot make the transition to low-carbon steel production, but the closure of blast furnaces at the plant still brought the loss of almost 2,000 jobs.

About 4,000 people work at British Steel's Scunthorpe plant, which is now the only facility making primary steel in the UK.

A spokesperson for the Department for Business and Trade said the Government had "no plans to nationalise British Steel", but did not deny that it was an option under consideration.

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They said: "We're working across Government in partnership with trade unions and businesses to secure a green steel transition that's right for the workforce, represents a good investment for taxpayers and safeguards the future of the steel industry in Britain."

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