The government is “not ruling out” another Chinese partner for British Steel, the industry minister has said, putting her at odds with Business Secretary Jonathan Reynolds.
Sarah Jones told Sky News breakfast with Anna Jones that for any investment there are “stringent tests that have to be met” and they would apply “to a Chinese company as they would to any other company”.
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It comes after ministers rushed through an emergency bill on Saturday to take over British Steel’s Scunthorpe plant after talks with Chinese owners Jingye broke down, sparking a race against time to keep the furnaces running.
Business Secretary Jonathan Reynolds told Sky News’ Sunday Morning With Trevor Phillips he would not “personally bring a Chinese company into our steel sector” again, describing steel as a “sensitive area” in the UK.
But asked if the government was ruling out the possibility of another Chinese partner, Ms Jones said on Tuesday: “We’re not at the moment.
“I’m not going to say yes or no to anything that isn’t on the table or being looked at.
“Whatever the future for Scunthorpe, we want to make sure we can keep steelmaking in our country and we can grow that industry, not see the continued decline that we’ve had over recent years.”
Jingye stepped in with a deal to buy British Steel’s Scunthorpe plant out of insolvency in 2020, when Boris Johnson was prime minister.
But the company recently cancelled orders for supplies of raw materials needed to keep blast furnaces running at the site – the last in the UK capable of producing virgin steel.
After taking over the Scunthorpe plant on Saturday, ministers have been scrambling to secure the coking coal and iron ore needed to keep it operational.
If the furnaces cool down too much, the molten iron solidifies and blocks the furnaces, making it extremely difficult and expensive to restart them.
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