The UK government is expected to take over control of British Steel from its Chinese owner, Jingye, in the coming weeks, according to The Financial Times. 

British Steel operates the last two blast furnaces remaining in the UK. The company remains under the control of the Jingye Group, which bought it out of bankruptcy in early 2020. The Scunthorpe facility was transferred to government control in April 2025, reported GMK Centre. 

The company has been brought back under British government control to stop the risk of closure. Due to a report in September 2024 that the owner Jingye was planning to close the furnaces, with a loss of over 1,000 jobs.  

The UK government says departments will either use British steel or be required to provide a justification if the steel is to be sourced from overseas. Although while reduced, this is not intended to stop steel imports. 

Business and Trade Secretary Peter Kyle said: “Making steel in the UK is vital for national security, critical infrastructure and the wider economy. Steel-making is a cornerstone of our modern industrial policy that deliberately focuses support for key industries, technologies, and strategically important sectors.” 

The UK government says departments should either use British steel or be required to provide a justification if the steel is to be sourced from overseas. The aim is to boost local manufacturing, while reducing reliance on imported steel. 

Chris Ward, a Cabinet Office minister, told The Guardian: “These reforms are about using the full weight of government spending to support British jobs, protect our national security and grow our economy.” 

Jingye Group initially asked for £1 billion (€1.1 billion) and the UK government offered £100 million (€114.9 million).  

According to the National Audit Office, the Department for Business and Trade spent £377 million keeping the Scunthorpe site open. Spending is expected to reach £615 million by June 2026, and it could exceed £1.5 billion by 2028 depending on future policy choices.