The UK government completed the nationalisation of British Steel on Thursday, taking full public ownership of the Scunthorpe steelworks that had been controlled by China’s Jingye Group. The government had assumed operational control approximately a year prior after Jingye indicated plans to close the facility due to financial losses. Jingye stated in a Sunday statement that it intends to seek “full compensation through legal means to the very end” regarding the UK’s action.
The Chinese steelmaker acquired the Lincolnshire plant in 2020 but launched closure consultations last March, citing daily losses of £700,000. The government took operational control in April 2025 but lacked ownership authority to determine the facility’s future until this week’s full nationalisation. Officials stated the action was necessary to preserve a “vital national capability” and protect British steel production capacity.
A UK government spokesperson indicated that draft compensation regulations scheduled for release in the autumn will establish a process through which an independent assessor would determine potential compensation amounts. Commercial negotiations between the government and the Chinese steelmaker had failed to produce an agreement deemed acceptable to taxpayers, according to official statements.
The nationalisation has drawn diplomatic criticism from Beijing, with China’s commerce ministry expressing opposition on Friday and stating the move “seriously infringed” Jingye’s interests and damaged Chinese investor confidence in the UK. Beijing indicated support for Chinese firms protecting their rights but offered no specific details regarding enforcement measures. British officials emphasised their commitment to the UK-China relationship and continued openness to Chinese investment.
The steelworks employs approximately 2,700 workers and supports surrounding industries in North Lincolnshire. Government data released in March indicated operational costs of roughly £1.3 million daily. Business officials have stated that facility closure was not acceptable and the government will continue funding operations in the near term. The plant represents the nation’s sole primary steel production capability.