The future of the British Steel plant in Scunthorpe hangs in the balance as Business Secretary Jonathan Reynolds refuses to comment on whether the government can ensure the continued operation of the plant’s blast furnaces. The government seized control of the Chinese-owned plant amid fears that Jingye, the former owners, were preparing to shut down the two blast furnaces. Despite repeated questioning, Reynolds declined to provide assurances about the supply of necessary raw materials for the furnaces. He did, however, state that the government’s intervention provides the ‘opportunity’ to secure the required coal. In an interview with the BBC, Reynolds described the situation as ‘difficult and challenging’, but emphasised the importance of the government’s action in preserving the UK’s steel production capabilities. The Scunthorpe plant is the UK’s last remaining producer of virgin steel, a high-quality material essential for major construction projects. The government is currently seeking a buyer for British Steel, with Reynolds stating that he would not consider selling to another Chinese company. The financial implications of the takeover for taxpayers remain uncertain, with Reynolds suggesting that the company’s market value is ‘effectively zero’.
This story was adapted by The Lincoln Post from original reporting by www.bbc.com.
