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Critical raw materials will be delivered on Tuesday for use in British Steel’s blast furnaces, as the immediate crisis engulfing the company begins to ease.
Ministers had been concerned that British Steel’s Chinese owner, Jingye, planned to close the furnaces after talks between the two sides over a taxpayer support package broke down late last week.
The government raced to secure raw materials for British Steel after passing emergency legislation on Saturday to seize control of the company.
Shutting what are the UK’s last two remaining blast furnaces at British Steel’s Scunthorpe plant would leave Britain as the only G20 country without the ability to make steel from scratch.
Business secretary Jonathan Reynolds will travel to Scunthorpe for the unloading of the two shipments of iron ore pellets and coking coal from the port of Immingham in Lincolnshire.
Government officials believe this material will be enough to keep the British Steel furnaces operating for several weeks.
Another ship containing coking coal and iron ore is currently on its way to the UK from Australia, following a legal dispute between British Steel and Jingye over the cargo at the weekend.
A person briefed on the dispute said Jingye threatened to sell the material back to the Australian supplier last week — one of the main factors that spurred ministers to recall parliament to pass emergency legislation to take control of British Steel.
The shipment from Australia — which Jingye did not ultimately sell — has been paid for using existing budgets from the Department for Business and Trade.
“Thanks to the work of those at British Steel, and in my department, we have moved decisively to secure the raw materials we need to help save British Steel,” Reynolds said.
Jingye did not respond to multiple requests for comment.
British Steel said on Monday it had appointed Allan Bell, its chief commercial officer, as interim chief executive with immediate effect. The appointment as signed off by Reynolds to endure “consistent and professional leadership at British Steel’s Scunthorpe site”, according to the company.
The British Steel saga has triggered a growing backlash against Chinese investment in the UK economy. Reynolds said on Sunday there would be some areas where the UK government would not welcome Chinese investors.
China’s foreign ministry earlier on Monday urged the UK to treat its companies fairly and avoid politicising trade between the two countries.
“We hope the UK government will treat Chinese-invested enterprises in the UK fairly and impartially, protect their legitimate rights and interests, and avoid politicising or overstretching the concept of security in economic and trade co-operation,” said Lin Jian, a spokesperson for China’s ministry of foreign affairs.
Otherwise, Lin added, “it could undermine Chinese companies’ confidence in investing and co-operating in the UK”.
