What happened with British Steel’s Chinese owners and why have the government now taken control?
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Explained: Why the government stepped in to take control of British Steel
- The UK Government has taken Control of British steel's Scunthorpe plant due to fears of closure by its Chinese owner, Jingye.
- Jingye cited financial unsustainability, tariffs, and environmental costs as reasons for potential closure, risking thousands of jobs.
- The Government's intervention aims to secure the UK's virgin steel production, crucial for major infrastructure projects.
- Ministers allege Jingye rejected a substantial Government offer and demanded excessive support, leading to the emergency takeover.
- While seeking a private investor, the Government acknowledges nationalization is likely, with costs expected to be covered by an existing steel fund.