Sky News Daily From Shanghai to Scunthorpe - what's China's influence on UK industry?
Apr 14, 2025
Paul Kelso, a business correspondent for Sky News, delves into the shifting dynamics of British Steel under Chinese ownership. He discusses the recent government intervention to nationalize operations amid fears about crucial supply shortages. The conversation raises flags on allegations of industrial sabotage linked to China and questions the implications of foreign investment on UK industry. Kelso highlights the UK's delicate balance of welcoming Chinese investments while ensuring national security, particularly in critical sectors.
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British Steel's Struggles Under Jingye
- Jingye, the Chinese owners of British Steel, have consistently complained about unprofitability since acquiring the company in 2020.
- They threatened to close the UK's last two blast furnaces at their Scunthorpe site, leading to government intervention.
Government Intervention in British Steel
- The British government has taken control of British Steel's operations but has not fully nationalized the company.
- They aim to maintain the plant's operations and secure raw materials to keep the furnaces running.
Importance of Virgin Steel Production
- Virgin steel, produced from iron ore in blast furnaces, is crucial for its hardness and versatility.
- The UK's two remaining blast furnaces are essential for national infrastructure, supplying materials like those used for 95% of British railways.