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Explained: Why the government stepped in to take control of British Steel

Prime Minister Sir Keir Starmer during a visit to meet British Steel workers in Appleby Village Hall near Scunthorpe, Lincolnshire
Prime Minister Sir Keir Starmer during a visit to meet British Steel workers in Appleby Village Hall near Scunthorpe, Lincolnshire (Peter Byrne/PA Wire)
  • The UK Government has taken Control of British steel's Scunthorpe plant due to fears of closure by its Chinese owner, Jingye.
  • Jingye cited financial unsustainability, tariffs, and environmental costs as reasons for potential closure, risking thousands of jobs.
  • The Government's intervention aims to secure the UK's virgin steel production, crucial for major infrastructure projects.
  • Ministers allege Jingye rejected a substantial Government offer and demanded excessive support, leading to the emergency takeover.
  • While seeking a private investor, the Government acknowledges nationalization is likely, with costs expected to be covered by an existing steel fund.
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