Why did the United Kingdom rush to save British steel and what is happening after that?

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The UK government took control of the British steel after passing the emergency legislation on Saturday. Business Secretary Jonathan Reynolds MPS told the ministers that they had no choice but to ensure that the fennel oven was on the pioneering Scunthorpe site in Lincolnshire work.

The government is now facing the difficult task of managing a very complex industrial process.

The closure of the ovens was a historical turning point for the United Kingdom, leaving the country without the ability to make steel from iron and coal ore for the first time since the industrial revolution.

How much will this taxpay?

The government stopped nationalizing it, but preserving it British steelOperations will come at a large cost of taxpayers in the United Kingdom.

Reynolds said the company’s market value was zero. But it is extremely making losses and perhaps the taxpayer will have to stand behind those losses. Jenny, the Chinese Steel owner, said last month that the company is losing more than 700,000 pounds a day and that it is no longer “financially viable.”

British Steel accounts showed that it had lost losses of 408 million pounds at a rotation rate of 1.7 billion pounds until the end of 2022. It achieved a pre-tax loss of 231 million pounds in 2023. It also owes severely-with distinctive debts worth 736 million pounds at the end of 2023.

Simply operation of the factory will be expensive due to the price of raw materials and high energy costs. Import duties on steel The American Donald Trump administration represents another challenge.

On Sunday, Reynolds compared the annual losses that the government must cover, with a total of about 230 million pounds, at the cost of “the complete collapse of British steel.” This, as he told Sky News, will be “easily more than a billion pounds.”

Why did the government feel the need to act?

Reynolds said that after months of negotiations with Jenji, it has become clear in recent days that the company’s intention is to cancel and refuse to pay for additional requests for raw materials, “Reynolds said.

The factory needed new raw materials to be delivered, including iron and coal, to prevent cooling furnaces to the point that they were not able to continue running. Its operation again is not impossible, but it is an expensive and long process.

The government is also keen to maintain the ability of the main steel industry in Britain. The closure of the BRISHISH Steel Oven will reside the UK as the only G7 country without the ability to make steel from scratch. This step also prevented the loss of about 3,500 jobs in the company.

Reynolds said the government offered to pay the costs of materials, but it instead made the opposite of ministers to pay hundreds of millions of pounds without any conditions. This offer did not include any commitment to ensure that money and other assets were not “immediately transferred to China.”

People close to Chancellor Rachel Reeves said that she had spent last week in the pursuit of “leadership in a major transformation in the mentality of people in Whitol” who were originally placed against any step towards nationalization.

One of them said: “I could not have given more taxpayer money (to Jenny).”

What is the future of the British steel sector?

This step to control British steel is just a stop solution. The steel industry in Britain has decreased for decades, hindered by high energy and operating costs.

Cullen Richardson, head of the steel agency at the reporting agency, said that the United Kingdom “one of the world’s highest regions to produce steel, regardless of production.” He said: “The origins of the melting oven are old, ineffective and hindering due to chronic investment.”

The biggest challenge is carbon removal. The son -in -law will have to come close to helping the UK to meet the pledge of zero carbon emissions by 2050.

The government has placed 2.5 billion pounds to support the sector during the transition. Last year, a deal worth 500 million pounds with Tata Steel to help the India -owned company to restructure and move to an electric oven is less carbon density that dissolves the recycled steel.

A similar Decarbonization plan must occur in British Steel, but this will require a major investment. Jingye asked the government to obtain 1 billion pounds in the plan of 2 billion pounds to build two electric arc oven in Scunthorpe.

The shift to the electric arc ovens will maintain the steel industry but not the primary steel industry – steel making from raw materials.

Ministers also need to work on energy costs. Richardson said that although the electric arc furnaces “benefit from the low carbon costs and the availability of local scrap,” there is no occurrence without any structural changes in the energy costs that the mills bear. “