The UK is preparing to nationalize British Steel – The Guardian

Control over the company could be taken over in the coming weeks

The United Kingdom plans to take economic control of British Steel from its Chinese owner, Jingye, one year after the government assumed management of the company. The Guardian reports this, citing sources.

The company operates the last two blast furnaces remaining in the UK, but is still under the control of the Chinese company that bought it out of bankruptcy in early 2020. The Scunthorpe facility was transferred to government control in April 2025.

Last week, the British government decided to designate the steel industry as vital to national security, which could pave the way for nationalization on these grounds, according to a source familiar with the matter.

In early March, the government offered Jingye £100 million for British Steel but was turned down; initially, the Chinese company had demanded over £1 billion.

According to the source, as an alternative, the government could simply set a deadline for Jingye to finalize the deal. However, regardless of the various options, ministers plan to take economic control of British Steel away from Jingye in the coming weeks, the insider added.

According to the National Audit Office, by the end of January 2026, the costs of maintaining British Steel had risen to £377 million and could exceed £1.5 billion by 2028 if operations continue at the current pace. Therefore, officials are seeking to resolve the ownership issue as quickly as possible. This is partly because, without a resolution, it will be impossible to sell the company to another private investor.

Gareth Stace, CEO of the trade organization UK Steel, stated that the sector would strongly welcome the nationalization of British Steel, which would provide vital certainty for the workforce, the company’s customers, and the broader supply chain at a critical moment.

British Steel has already attracted interest from potential buyers.

As a reminder, the British government hopes to find a private buyer for British Steel and is seeking to involve bankers in the sale process. There was also a separate view regarding the advisability of merging the steelmaker with other companies in the sector, notably Sheffield Forgemasters (a heavy engineering company), which is also under government control.