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The British government recently stated that the total cost of taking over British Steel has risen to £235 million. 23RK100 oriented electrical steel, The government also acknowledged that the threat of EU tariffs has caused widespread concern and could have a significant impact on the steel company's operations.
The British government took over British Steel in April this year through emergency legislation, amid market concerns that its owner, Jingye Steel, might shut down the company's blast furnace in Scunthorpe.
The takeover saved the jobs of approximately 3,500 employees, but it also left British taxpayers responsible for the operating costs of the loss-making company. 23RK100 oriented electrical steel, In a written statement to Parliament, British Industry Minister Chris McDonald said that government spending would cover "working capital, including raw materials, wages, and the payment of outstanding bills – including those owed to small and medium-sized enterprises (SMEs) in the supply chain."
The latest financial outlay is in addition to the £604 million (2019–2020) previously spent by the government to keep the Scunthorpe plant operational. The company had gone bankrupt under its previous owner, private equity firm Greybull Capital, before being acquired by Jingye Steel in early 2020.
The British government's current strategy is to increase British steel production to improve its profitability. Previously, Jingye Group had stated that the Scunthorpe plant was losing up to £700,000 per day due to global oversupply. 23RK100 oriented electrical steel, In addition, the government's official receiver is also temporarily in charge of another struggling steel company, Liberty Steel.
However, if the EU implements its plan to raise steel import tariffs to 50%, the difficulties faced by British steel producers and the entire UK steel industry will be further exacerbated. Industry lobbying group UK Steel warns that this would be a "major threat to the survival of the industry," as 78% of British steel exports go to the EU market.
Industry Minister McDonald (a former steel industry executive) also pointed out that the EU's tariff threats are causing considerable anxiety for many British steel producers and their employees.
Currently, the British government is negotiating with the EU to secure independent export quotas for British steel products in an attempt to maintain trade flows.
