British Steel has suddenly been in the spotlight since the end of last week amid fears that the company could collapse.
Keir Starmer even took the unusual move of summoning MPs back to parliament – on a Saturday in the middle of their Easter recess – so the government could legally step in and take over the firm via an emergency law.
But why was this one company so important? Here’s what you need to know.
What’s happened with British Steel?
British Steel is the last remaining producer of mass-produced virgin steel in England, and has two blast furnaces.
The Lincolnshire plant currently employs 2,700 people – about 75% of British Steel’s whole workforce.
Chinese firm Jingye took over in 2019, when Boris Johnson was in Downing Street.
But the overseas owner recently decided that it was no longer economically viable because of the investment needed to upgrade the works to run on renewable energy.
There’s also plenty of steel on the international market right now, pushing down price (and demand).
The Labour government have been holding talks with Jingye to try to prevent the site’s closure, but it seems these discussions have broken down.
That’s why MPs were called to Westminster on Saturday.
Why was it so important to save Scunthorpe?
Virgin steel is essential for new buildings and railways, meaning it would be key to the government’s plan to grow the economy via housing development and major infrastructure projects.
If Scunthorpe closed, the UK would become the only nation in the G7 – group of leading global economies – without the ability to make the material.
The government was already setting up an industrial plan which includes domestically produced steel when it became clear that Scunthorpe was going into crisis.
It needs raw materials urgently in the next fortnight or the furnaces could cool to a point where it is neither easy nor cost-effective to revive them.
Thousands of people would also lose their jobs if the site were to close down.
Plus, Labour pledged in its manifesto to spent £2.5bn to turning around the steel industry.
Did Trump’s tariffs play a part in this?
The US president’s decision to pin a 25% tariff – that’s a tax on any foreign imports heading to the States – on steel exacerbated the challenges already faced by the industry.
And, over-production of steel means there is plenty on the international market right now – so prices have fallen.
Manufacturers face heavier costs too, particularly on electricity.
What did parliament decide?
During a hasty return to Westminster on Saturday, MPs voted in favour of granting the government power to oversee the company.
It is still owned by Jingye but ministers now control the management and how it operates.
The new legislation will see Scunthorpe move from using blast-furnaces – which create strong, virgin steel – to electric arc furnaces which can operate on renewable energy, but produce a much weaker end product.
Business secretary Jonathan Reynolds will now be allowed to order the company to buy the raw materials needed to stay afloat.
The government will cover running costs, too. According to Jingye, that could be up to £700,000 a day.
What happens next?
The government is expected to try and nationalise the plant later this month, meaning it would pass completely back into the government’s ownership.
That means it would be taken back into public ownership.
This has happened before. The Conservative government in 2021 nationalised steelmaker Sheffield Forgemasters, and promised to invest £400m over 10 years.
But, the government allowed the blast furnaces owned by Tata Steel in Port Talbot to close last year – they also gave £500m to the Indian-based owners to change to electric arc furnaces.
It’s worth noting that Jingype wanted to make the same transition, but for an “excessive amount of money” from the government, according to Reynolds.
The government is trying to find another buyer willing to take on Scunthorpe, but that seems unlikely.
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