Parliament is to be recalled tomorrow (Saturday 12) so MPs can vote on whether or not to nationalise British Metal.
Final month, Jingye, the Chinese language proprietor of the UK’s solely remaining blast furnaces said they were consulting on plans that could see the Scunthorpe steelmaking facility, which it said loses £700,000 per day, shut down.
Commerce teams described the potential closure of the location as resulting in a serious hole in capability for UK metal.
The metal business has since been hit by 25 per cent tariffs on exports to the US.
A spokesperson for 10 Downing Road stated: “The prime minister has been clear, his authorities will all the time act within the nationwide curiosity. All actions we take are within the identify of British business, British jobs and for British employees.
“Tomorrow parliament can be recalled to debate the Metal Business (Particular Measures) Invoice. The Invoice offers the federal government with the facility to direct metal corporations in England, which we’ll use to guard the Scunthorpe website.
“It permits the UK Authorities to protect functionality and guarantee public security. It additionally ensures all choices stay viable for the way forward for the plant and the livelihoods it helps.”
He added: “We’ve been negotiating with British Metal’s homeowners in good religion ever since coming to workplace. We’ve all the time been clear there’s a vivid future for metal within the UK. All choices stay on the desk.”
Gareth Stace, director common of commerce physique UK Metal, welcomed the transfer.
He stated: “Recalling Parliament is the proper choice to make sure that British Metal, the broader metal sector and the 1000’s of metal employees and their households are given the understanding they deserve in making an attempt instances.
“It’s welcome information that authorities recognises the seriousness of the UK’s metal business circumstances and the important contribution our sector makes to the nationwide economic system and safety, in addition to the communities that depend on it.
“We sit up for additional element from authorities on its dedication in direction of a safe and steady metal sector.”
The GMB union, which represents employees on the Scunthorpe plant, additionally welcomed the transfer as a means of saving jobs.
It stated: “GMB has lengthy known as for nationalisation as the one strategy to save the UK metal business. Tomorrow seems like step one in that course of.
“The enterprise secretary have to be given large reward for appearing decisively to safeguard this very important business and 1000’s of jobs that depend on it.”
Chinese steelmaker Jingye bought British Steel out of receivership in March 2020, stating that it foresaw “a brand new illustrious chapter within the historical past of British steelmaking”.
