Business Secretary Jonathan Reynolds has said it is “likely” that British Steel will be nationalised.
It comes after he appeared to row back on his claim that he would not bring a Chinese company into the steel sector again after the government had to urgently step in to save the British Steel plant in Scunthorpe.
Mr Reynolds, speaking to reporters in the Lincolnshire town, said that nationalisation was the “likely option at this stage”.
He added: “What we are now going to do, having secured both control of the site and the supply of raw materials, so the blast furnaces won’t close in a matter of days, is work on the future.
“We’ve got the ownership question, which is pressing.
“I was clear when I gave the speech in parliament – we know there is a limited lifespan of the blast furnaces, and we know that what we need for the future is a private sector partner to come in and work with us on that transformation and co-fund that transformation.”
Reynolds rows back
Mr Reynolds said he would look at Chinese firms “in a different way” following the race to save British Steel, but did not rule out their involvement completely.
The comments were at odds with his previous remarks to Sky News’ Sunday Morning With Trevor Phillips, when he said he would not “personally bring a Chinese company into our steel sector” again, describing steel as a “sensitive area” in the UK.
The government has taken over British Steel’s Scunthorpe plant, the last in the UK capable of producing virgin steel, after talks with its Chinese owners, Jingye, broke down.
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The company recently cancelled orders for supplies of the raw materials needed to keep the blast furnaces running, sparking a race against time to keep it operational.
Materials secured by the government arrived at the site on Tuesday, but questions remain about the long-term future of British Steel and whether it will be fully nationalised or the…
