Wed, 09 Apr 2025

Wed, 09 Apr 2025 Government offers to buy coal to keep British Steel going, sources say

British Steel has warned materials needed to keep blast furnaces operational in Scunthorpe are running out.

* If the deal is not reached, production will cease within weeks and cannot be restarted due to delivery times of up to 45 days.
* Government sources have stated that materials need to be paid for promptly, or else the plant will shut down permanently.
* The government has not ruled out nationalizing British Steel, which employs 2,700 people.
* Talks between British Steel bosses and government officials are set to resume on Thursday.
* Business Secretary Jonathan Reynolds met with Jingye and British Steel CEOs on Wednesday, saying that both sides welcomed continued cooperation in talks.
* Ministers prefer a commercial solution but are now considering the option of directly buying raw materials using taxpayers' money.
* One source says that due to the current situation, long-term Chinese involvement in British steelmaking may not be feasible.
* Government representatives are frustrated with Jingye for what they see as an effective shutdown of British Steel during the 45-day consultation period.
  >>