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When the Government took effective control of Britain's last remaining steel factory from its Chinese owners there was relief among workers in Scunthorpe. The proposed closure by Jingye would have seen the UK become the only country in the Group of Seven industrial nations without the capacity to make its own steel from scratch.

Staff at the Scunthorpe fought hard to keep the plant open, even preventing Chinese executives from gaining access to key areas of the steelworks before MPs debated a Bill which granted the Government emergency powers to seize control of the site. Police were called to the scene and forced the bosses to leave, according to The Times. Humberside Police said officers attended the works at 8.30am on Saturday (April 12) after a suspected breach of the peace. A spokesperson for the force said checks were made and individuals spoken to but there were no concerns raised and no arrests.

MPs and peers approved the emergency legislation without opposition, giving Business Secretary Jonathan Reynolds the power to require British Steel to keep the Scunthorpe plant going after talks with Jingye broke down.

In a highly unusual step, the Government recalled Parliament from its Easter recess at short notice, fearing the blast furnaces could be closed within days without urgent action.

Prime Minister Sir Keir Starmer said the Government had "stepped in to save British Steel". He added: "We are acting to protect the jobs of thousands of workers and all options are on the table to secure the future of the industry."

The legislation stopped short of fully nationalising British Steel. Instead it allows Mr Reynolds to instruct the company to maintain the blast furnaces, keep staff employed and continue to purchase the raw materials needed to make steel. There will also be criminal penalties for executives if they refuse.

On Sunday, Mr Reynolds declined to guarantee British Steel would be able to secure enough raw materials in time to keep the Scunthorpe blast furnaces going.

The Business Secretary said he would not make the situation "more difficult" by commenting on specific commercial details the day after taking emergency powers to gain control of the site.

If the blast furnaces run out of raw materials, they can never be turned back on. Stopping that from happening was the main reason the Government recalled Parliament.

Mr Reynolds said the Government had decided to take emergency action when it learned Jingye had not only stopped ordering more raw materials, but had begun selling off the supplies it already had.

The company had also rejected an offer of support in the region of £500million, instead demanding more than twice that figure with few guarantees the blast furnaces would stay open.

In the Commons on Saturday, Mr Reynolds said Jingye had not been negotiating "in good faith", while on Sunday he suggested it had not been acting "rationally".

He suggested the company's ultimate plan had been to close the blast furnaces, but keep hold of the more profitable steel mills and supply them by importing steel from China.

But he declined to accuse the company of deliberately sabotaging the business at the behest of the Chinese Communist Party (CCP).

Jingye has links to the CCP, as do all major Chinese companies, but Mr Reynolds said he was "not accusing the Chinese state of being directly behind this".

Reform UK leader Nigel Farage told the BBC he was "100% certain" the CCP had ordered Jingye to buy British Steel in order to close the business, but provided no evidence, saying it was only "intuition".

Jingye agreed to buy British Steel in 2019 when Boris Johnson was prime minister. Ministers are now hopeful they can find a private company to invest in the business. However, the cost of modernising the Scunthorpe plant could run into the billions.

There are currently no private investors willing to take the company on. Mr Reynolds has acknowledged nationalisation is "the likely option".


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