industry
British emergency law preserves steelworks from closure
According to its Chinese owner, the steel mill in Scunhorpe English is no longer profitable. A law is passed in the quick run to prevent the closure.
The British Parliament has decided to save the country’s last primary steelworks. In extraordinary sessions during the actual Easter break, both chambers voted for the draft law through which the government can take control of British Steel’s work in Scunhorpe. This is intended to prevent the Chinese owners from setting up production.
The government will “never stand by” how the heat from the remaining blast furnaces of the United Kingdom escapes without there being a proper procedure, said Minister of Economy Jonathan Reynolds. He accused Chinese owners of rejecting the government’s offer to buy raw materials for production.
Thousands of jobs in danger
The Chinese steel company recently stated that the work made enormous losses despite all investments. British steel production has been declining for years. Financial pressure has recently tightened to steel imports by the new US tariffs. According to the government, Scunhorpe is around 3,500 jobs.
The emergency law does not yet mean nationalization. The government hopes that other investors will step in. According to the news agency PA, there are no prospects. Prime Minister Keir Strandmer had said that he would always act “in national interest” in order to maintain British jobs.
The blast furnace in Scunhorpe is the last in the United Kingdom that can produce primary steel from iron ore and coke. In contrast to the steel products from electric laying stoves that melt steel scrap – this is suitable for more industrial applications, for example in engine construction, construction and shipping.
dpa
Source: Stern
