Government secures 11th hour raw materials to keep Scunthorpe steel alive

Business and Trade Secretary Jonathan Reynolds will travel to Immingham today [15th April] as raw materials for British Steel are transported to the site, following the government settling payment for them.

The materials, which have arrived from the United States, are expected to keep the blast furnaces running for the coming weeks, and officials are continuing to work at pace to establish a steady supply to maintain operations.

A separate shipment of coking coal and iron ore is on the way to the UK from Australia after a legal dispute between British Steel and Jingye was resolved over the weekend. The cargo has been paid for using existing Business and Trade budgets.

Reynolds said, “demand is set to shoot up” for UK-made steel, and industries depend on it.

“We will always act in the interest of working people and UK industry. Thanks to the work of those at British Steel and in my department, we have moved decisively to secure the raw materials we need to help save British Steel,” he said.

The government’s action follows new legislation passed last weekend, which grants powers to direct the company’s board and workforce, ensure wages are paid, and order necessary raw materials for the blast furnaces. The law also allows the government to carry out these functions itself if required. 

This move is designed to protect 37,000 jobs in the supply chain and support infrastructure delivery as part of the government’s Plan for Change.

Over the weekend, the government confirmed it has secured sufficient coke and iron ore pellets to keep the blast furnaces operating.