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The UK government said it was confident it would secure enough raw materials to keep British Steel’s blast furnaces running, in the first sign that the immediate crisis engulfing the company was easing.
Ministers had been concerned that British Steel’s Chinese owner, Jingye, planned to close the furnaces after talks between the two sides over a taxpayer support package broke down late last week. Closing British Steel’s two furnaces at Scunthorpe would leave the UK as the only G20 country without the ability to make steel from scratch.
But a spokesperson for Prime Minister Sir Keir Starmer said on Monday that two shipments of iron ore pellets, coke and coal were in port at Immingham on the Humber estuary. A third was on its way, currently off the coast of west Africa.
“We are now confident in being able to secure enough materials to keep the blast furnaces burning,” they said.
Operational teams were on Monday afternoon still assessing whether the decision by Jingye to idle one of the two furnaces this week could be avoided, they added.
The government has been racing to secure essential raw materials after passing emergency legislation on Saturday to seize control of British Steel.
The British Steel saga has triggered a growing backlash against Chinese investment in the UK economy. Business secretary Jonathan Reynolds said on Sunday there would be some areas where the UK government would not welcome Chinese investors.
“I think we have got to be clear about what is the sort of sector where, actually, we can promote and co-operate, and ones frankly where we can’t.”
Downing Street said on Monday there was no current plan for a wider review into Chinese investments.
“We already have a very rigorous review system, particularly when it comes to our energy sector — all investments are subject to the highest national security scrutiny,” the spokesperson said. “We will take a consistent, long-term and strategic approach to China.”
China’s foreign ministry earlier on Monday urged the UK to treat its companies fairly and avoid politicising trade between the two countries.
“We hope the UK government will treat Chinese-invested enterprises in the UK fairly and impartially, protect their legitimate rights and interests, and avoid politicising or overstretching the concept of security in economic and trade co-operation,” said Lin Jian, a spokesperson for China’s ministry of foreign affairs, at a Monday briefing in Beijing.
Otherwise, Lin added, “it could undermine Chinese companies’ confidence in investing and co-operating in the UK”.
Jingye did not respond to multiple requests for comment regarding the potential UK government takeover of British Steel.
British Steel said on Monday it had appointed Allan Bell, its chief commercial officer, as interim chief executive with immediate effect. The appointments were signed off by Reynolds to endure “consistent and professional leadership at British Steel’s Scunthorpe site”, according to the company.
