China warned the UK government on Monday to treat the Chinese owners of British Steel fairly or risk undermining investor confidence in the country, two days after UK authorities took control of the company.
China’s Foreign Ministry made the comment as government-appointed managers raced to prevent British Steel from shutting down the last two blast furnaces in Britain that make so-called virgin steel from raw materials.
Parliament on Saturday passed legislation authorising the government to take control of the company and its Scunthorpe steelworks from Jingye Group, which has owned British Steel since 2020. Jingye still owns the company but British authorities have taken control of day-to-day operations.
“We hope the British government treats Chinese enterprises investing and operating in the UK fairly and justly, protects their legitimate rights and interests, and avoids politicising and over-securitising economic and trade cooperation, so as not to affect the confidence of Chinese enterprises in investing and cooperating in the UK,” Foreign Ministry spokesman Lin Jian said during the weekly press conference in Beijing.
Prime Minister Keir Starmer’s spokesman, Dave Pares, said on Monday that while Jingye still owns the Scunthorpe works in northeastern England, nationalisation is “a likely option in the short term”. In the longer term, the government hopes to find a private investor, he added.
British Steel on Monday announced the appointment of a new executive team focused on ensuring “consistent and professional leadership” of Scunthorpe.
Two longtime British Steel executives, Allan Bell and Lisa Coulson, were named as the company’s interim chief executive and chief commercial officer. The appointments were approved by Business Secretary Jonathan Reynolds.
Bell, who has worked at the Scunthorpe steelworks for 14 years, said his main goal was to ensure continued steel production at the plant.
“Our immediate priorities are securing the raw materials we need to continue blast furnace operations, ensuring we have the dedicated personnel to run those furnaces, and maintaining the highest levels of health and safety for our workforce,” Bell said in the statement.
Starmer on Saturday took the dramatic step of recalling Parliament from its spring recess to pass emergency legislation authorising the government to take control of British Steel. Authorities were concerned about the plant’s future after Jingye stopped ordering the iron ore and coking coal needed to keep the furnaces operating.
Once blast furnaces are shut down, it is difficult and expensive to restart them, raising concerns that Britain might lose the ability to make high-quality virgin steel needed by builders and railroads as the government tries to spur economic growth. Other British steelmakers are already in the process of shifting to electric arc furnaces that make steel from scrap metal.
Pares said the government is now confident the plant will receive the raw materials it needs to keep operating for the time being. Shipments of iron ore pellets and coking coal have arrived at the port in Immingham and will reach Scunthorpe, about 20 miles (32 kilometres) away, in the coming days, he told reporters in London.
Source: Euro News
