The UK government, through emergency legislation, controls operations at British Steel owned by Jingye. Business Secretary Reynolds stated intent to likely nationalize the Scunthorpe plant employing 2,700, aiming to prevent closure of blast furnaces and halt in UK steel production by Jingye.
The emergency legislation swiftly passed in one day with a rare Saturday sitting of both houses. UK government officials took over operations in Scunthorpe after approval by Commons and Lords. PM Sir Keir Starmer stated, “Today, we intervened to save British steel,” affirming their dedication to safeguarding jobs and securing the industry’s future.
Reynolds has broad control over the plant’s operations and staff to avoid halting production. Despite this, Jingye remains the plant owner. Recent tensions between Jingye officials and workers in Scunthorpe led to police intervention over suspected breach of peace.
The government wants private investment to save the struggling Scunthorpe plant, but no offers have been made. Reynolds suggested public ownership as a probable solution, stating the government would compensate shareholders at the fair market rate upon nationalization, though he noted the market value was essentially zero in this instance.
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