UK Secretary of State for Business and Trade: The UK's steel industry is no longer welcoming China.
After the UK government took control of British Steel from its Chinese owner, Labour authorities expressed confidence on Monday that they would secure enough raw materials to keep the blast furnaces of the UK's last remaining primary steelmaker burning.
The ministers of the Labour government said that the owners of British Steel - the Chinese enterprises - hoped to shut down the loss-making Scunthorpe plant's blast furnaces after rejecting the government's funding proposal. This move would force the UK to rely on steel imports. The Labour government recalled MPs from the Easter recess on Saturday, marking the first time since the 1982 Falklands War that the British Parliament has been recalled during a weekend – to pass emergency legislation and grant the government the power to direct the company's board and employees as well as order raw materials.
On Monday morning, the Labour government approved the appointment of an interim CEO and chief commercial officer of British Steel, both long-term employees of the plant, and stated that there are sufficient raw materials domestically. A spokesman for UK Prime Minister Starmer said two shipments of raw materials such as iron ore and coking coal have docked at local ports, with a third shipment en route.
"We now have confidence in securing the necessary materials," the spokesman told reporters. "Clearly, we will work with management to further determine the required raw materials to maintain a stable pipeline supply and keep the furnaces burning," he added.
Earlier on Monday, Treasury Secretary Murray said the focus was on getting materials into the blast furnaces, adding that if the government did not act over the weekend, these blast furnaces would be shut down. The Labour government stated that some companies, including Tata Group of India and UK Steel Company Rainham Steel, also provided management support and raw materials.
The furnaces at the Scunthorpe plant need constant fueling and incur losses of £700,000 per day. The output of these furnaces is used in railway networks, construction, and the automotive industry. Without this factory, the UK would have to rely on steel imports under conditions of trade war and geopolitical instability.
The intervention on this plant, which employs 3,500 people, and more employees in the supply chain prompted UK Secretary of State for Business and Trade, Alister Reynolds, to say on Sunday that the UK's steel industry is no longer welcoming China. Reynolds told Sky News: "As a country, we made mistakes in the past." He criticized previous Conservative leaders for allowing Chinese companies to operate sensitive infrastructure. "We were too naive in certain aspects," Reynolds said.
Source: rfi
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