The British government has brought British Steel into public ownership to protect domestic steelmaking capacity, secure skilled jobs and stabilise operations at the company’s Scunthorpe plant.Previously owned by China’s Jingye Group, British Steel had been under government control since April 2025 after proposed blast furnace closures threatened the future of the UK’s last primary steelmaking site. The Scunthorpe facility employs around 2,700 people directly and supports thousands of additional jobs across the steel supply chain.

The government said public ownership was necessary after efforts to find a suitable private-sector solution failed. British Steel supplies critical products to the rail, construction, automotive and infrastructure sectors, making its continued operation strategically important for the country.Authorities have reportedly invested about £640 million to maintain production, with daily support exceeding £1 million. An independent valuation process will determine whether Jingye receives compensation for the takeover.

The immediate priority will be stabilising British Steel and developing a commercially viable long-term plan. Future investment is also expected to focus on modernisation and lower-carbon steel production while preserving the UK’s strategic industrial capabilities.