‘It had to be done’: Dorset steel boss backs British Steel nationalisation as vital for UK industry
British Steel has been brought into public ownership, with the Government saying the move protects jobs and keeps UK steelmaking alive
The Government’s decision to bring British Steel into public ownership has been welcomed by a leading Dorset manufacturer, who says nationalisation is the only realistic way to safeguard the UK's steel industry and protect Britain's industrial future.
The move gives ministers full control over British Steel after the Government took operational control of the business last year while ownership remained with China's Jingye Group.
Ministers say bringing the company into public ownership will protect thousands of jobs, maintain Britain's ability to produce virgin steel and buy time to develop a long-term strategy for the sector.
For Dorset-based REIDSteel, which purchases thousands of tonnes of steel from British Steel every year, the decision marks a crucial turning point.
Managing director Simon Boyd said years of private ownership had failed to deliver the investment needed to secure the industry's future.
“The only way that we're going to have a sustainable steel industry is with massive investment,” he said.
“Sell-offs to private individuals have not resulted in proper investment being made and instead government has subsidised these companies to run the business into the ground.”
Mr Boyd accused Jingye Group of failing to modernise the Scunthorpe works, where the remaining blast furnaces date back to 1954 and 1938 and are nearing the end of their operational lives.
He argued that government intervention had become unavoidable if Britain was to retain the ability to manufacture primary steel.
Without domestic production, the UK would become the only G7 nation unable to produce virgin steel - leaving manufacturers increasingly dependent on imported materials.
For companies such as REIDsteel, whose products include defence structures, aircraft hangars and bridges, that prospect carries significant risks.
“We are a user of steel that's made from British Steel,” Boyd said.
“If we become reliant on imports for all of that, certainly with the volatility in the world today, we will be at the whim of others.”
Mr Boyd acknowledged the scale of the financial challenge facing ministers, arguing that new blast furnaces and electric arc furnaces would require investment running into several billion pounds.
However, he said the benefits should be measured over decades rather than years.
“A new blast furnace and a new electric arc furnace require several billion to be put in there, but that will pay back to the UK economy in a 10-to-20-year span,” he said.
He believes nationalisation is only the beginning, calling for sustained investment to create jobs, modernise production and establish Britain as a global leader in green steel.