British Steel: Reynolds says Scunthorpe nationalisation ‘likely option’
Jonathan Reynolds has said that the nationalisation of the British Steel plant in Scunthorpe is the “likely option at this stage”, while stressing the need to secure a new private sector partner for the business due to the “very significant” scale of capital required for steel transformation.
It comes after he seemed to distance himself from his previous claim that he would not bring a Chinese company into the steel sector again after ministers had to urgently step in after talks with British Steel owners Jingye broke down.
Speaking to reporters at the site in North Lincolnshire, Reynolds said the response from the British Steel workforce had been “fantastic”.
He said: “It wasn’t just about the situation with the raw materials – urgent and pressing as that was – there had been breakdown of trust and confidence between the shareholder and the workforce. That was really, really evident.
“What we are now going to do, having secured both control of the site and the supply of raw materials so the blast furnaces won’t close in a matter of days, is work on the future.”
Scunthorpe nationalisation?
And he continued: “We’ve got the ownership question, which is pressing.
“I was clear when I gave the speech in parliament. We know there is a limited lifespan of the blast furnaces and we know that what we need for the future is a private sector partner to come in and work with us on that transformation and co-fund that transformation.”
The secretary of state said: “All the workforce here are asking from me right now is that they didn’t lose their jobs effectively in a matter of days, because the raw material was going to run out for the blast furnaces, and to be a part of that conversation in a way which does what they are most passionate about, which is continuing steelmaking in this area.”
MPs and peers passed emergency legislation on Saturday to take over the Scunthorpe British Steel plant, which is home to the last furnaces in the UK capable of producing virgin steel.
The Jingye-owned company recently cancelled orders for the raw materials needed to keep the blast furnaces running, sparking a race against time to keep it going.
Materials, including coking coal, have been secured, but questions remain about the site’s long-term future and whether it will be fully nationalised or the private sector will get involved.
