Cliff Notes – Last-minute efforts to secure raw materials under way to save British Steel
- British Steel is urgently working to secure raw materials like coking coal amid a crisis that threatens the future of the Scunthorpe plant, with government officials involved in negotiations.
- Business Secretary Jonathan Reynolds emphasized the importance of steel for UK infrastructure and announced plans for a long-term investment strategy, while warning that further intervention may not guarantee the plant’s survival.
- The government’s recent emergency legislation has brought the steelworks under effective government control, following concerns raised by unions about cancelled orders from Chinese owner Jingye.
Race to keep British Steel furnaces running under way
Last-minute efforts to keep British Steel operating are to be carried out today, as the plant races to secure a supply of raw materials.
The Department for Business and Trade said officials are working to secure supplies of materials, including coking coal, to keep British Steel operational, as well as to ensure all staff will be paid.
It added that setting up new supply chains was “crucial” as a fall in blast furnace temperature could risk “irreparable damage to the site, with the steel setting and scarring the machinery”.
Unions said earlier this month that British Steel’s owner, Chinese company Jingye, decided to cancel future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.
Additional sources
British Steel: Government races to keep Scunthorpe furnaces burning – BBC
