Scunthorpe Steel’s Legal Owner, Jingye, Still a Hurdle for UK’s EAF Plan

A major, unresolved complication in the UK government’s new steel strategy is the legal owner of British Steel: Jingye. Business Secretary Peter Kyle’s plan for electric arc furnaces (EAFs) at Scunthorpe requires a “deal with Jingye… to walk away,” the text confirms.
The government has had “emergency state control” of the plant since April, when it stepped in to stop the Chinese owner from “planning to close it permanently.” This intervention saved 2,700 jobs but did not resolve the long-term ownership.
Now, as Kyle drafts a new strategy to modernise the plant, the temporary nature of the state’s control is a critical issue. The government cannot invest billions in new EAFs on a site it doesn’t formally own, or at least have a clear long-term lease on.
This negotiation with Jingye is another layer of complexity on top of an already difficult situation. The EAF plan itself is controversial, threatening thousands of jobs and the UK’s “primary steelmaking” capability.
The entire strategy is also being developed against a backdrop of global trade tensions with China, the very country Jingye is based in. The government must navigate this diplomatic and commercial minefield before its “clear future vision” for Scunthorpe can even begin.