Ministers must take back British Steel from its Chinese owners, senior military and industry figures demanded this weekend.
Critics spoke out as the fate of British Steel’s blast furnace in Scunthorpe, owned by Jingye of China , hangs in the balance.
If the Scunthorpe plant closed the impact would be ‘catastrophic’, said former Royal Navy Commander Tom Sharpe.
Top industrialist Sir Andrew Cook, one of the most respected steel bosses in the UK, echoed his concerns: ‘What other country allows itself to be raped and pillaged by a hostile power?’
Both men spoke out as talks drag on to save the steelworks – with taxpayers set to fork out tens of millions of pounds for coking coal and iron ore to keep the site going.
Jingye wants the Government to double a £500million subsidy offer to help fund two new electric arc furnaces at the site and has refused to buy raw materials.
If talks fail, Sir Keir Starmer has said ‘all options are on the table’ – including renationalisation.
Sir Andrew, a former adviser to Lord Cameron, called on ministers to step in.
Ministers must take back British Steel from its Chinese owners, senior military and industry figures demanded this weekend
Critics spoke out as the fate of British Steel’s blast furnace in Scunthorpe, owned by Jingye of China, hangs in the balance
If talks fail, Sir Keir Starmer has said ‘all options are on the table’ – including renationalisation
The businessman, chairman of Britain’s biggest steel castings manufacturer, criticised the ‘mistake’ by former Prime Minister Boris Johnson’s government to hand British Steel to Jingye in the first place in 2019.
‘At the heart of this is the fundamental strategic asset. It’s so critical for this country.’
Commander Sharpe, who commanded four different warships over a 27-year career, said: ‘Should we let a potential adversary be in charge of our own ability to produce steel? Absolutely not. Why are we not just running it ourselves?
‘If there was an existential threat, we put everything on a war footing, and we’ve turned off that ability [to produce our own steel], it would be catastrophic. If we can’t produce our own steel, we’d look pretty stupid.’
The ability to produce virgin steel is seen as vital to Britain’s economy, for use in defence and aerospace, major construction projects such as HS2 and Heathrow’s planned third runway, new nuclear and renewable power projects.
Sir Andrew believes Britain must retain a blast furnace ‘to be self-sufficient’ because electric arc ones can only recycle steel rather than make it from new.
This would involve building at least one new furnace at great cost – with carbon capture technology to meet climate targets – as the Scunthorpe ones are reaching the end of their lives.
Clive Betts, deputy chairman of the Public Accounts Committee and a Labour MP in Sheffield, once at the heart of the industry, said arguments for retaining UK steel production ‘go beyond profitability’.
In its heyday in the late 1960s, some 320,000 people were employed as steelworkers, producing 30million tons a year. Pictured: British Steel’s Scunthorpe plant
He added: ‘It’s particularly evident now there are major international geopolitical concerns.’
In its heyday in the late 1960s, some 320,000 people were employed as steelworkers, producing 30million tons a year.
Now, there are 34,000 employees making 5.6million tonnes of steel.
Insiders say the industry is bouncing back, with Port Talbot’s electric arc furnace – due to open in 2027 – being one of the world’s biggest.
But US trade tariffs could see countries such as China dumping steel elsewhere, saturating the market and leaving the UK industry struggling to compete.
