The government is facing mounting pressure to nationalize British Steel if talks aimed at a rescue deal fail, as the chair of the business committee calls for the Scunthorpe steelworks to be taken into public ownership. The Chinese owner of the company, Jingye, has stated that the blast furnaces at the site are no longer financially sustainable, putting 2,700 jobs at risk. Jingye has rejected an offer to fund a conversion to electric arc furnaces, raising concerns about the company’s long-term commitment to modernizing the business. The government is expected to make a formal offer to Jingye to help pay for raw materials to keep the furnaces running while discussions about the plant’s future continue. However, Jingye has been reluctant to accept the offer without knowing the conditions attached to it. Unite, Britain’s largest trade union, has also called for the government to nationalize British Steel, while ministers prefer a solution that keeps the company in private hands with some form of financial support. Business minister, Jonathan Reynolds, met with Jingye executives on Wednesday to discuss the ongoing talks. Nationalizing British Steel is seen as a way to protect critical sovereign capability like primary steelmaking amidst escalating global trade tensions. The decision to nationalize the company could be made if Jingye fails to respond to the government’s offer, with the clock ticking down on potential job losses and fuel shortages at the plant.
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