British Steel
A history of nationalization, privatization, and regulation of British steel.
Contents
History
Following World War 2, Attlee nationalized iron and steel production. The Iron and Steel Act, passed in 1949 and taking effect in 1951, established the Iron and Steel Corporation of Great Britain. It was directed to buy out the primary production plants, and sell licenses to the smaller ones. Automotive production plants were specifically exempted.
In 1952 however, Churchill reversed the nationalization and converted the company into the Iron and Steel Holding and Realisation Agency, directing it to sell all plants.
By the 1960s the British steel industry was not competitive, and Labour's interest in nationalization became a matter of employment rather than national security. Through the Iron and Steel Act, Wilson re-nationalized production in 1967. The British Steel Corporation (BSC) centralized the industry by reallocating production across plants, helping to keep certain ones solvent.
Thatcher closed many of the plants, and finally in 1988 privatized BSC as British Steel. This was taken over by Dutch holding company Corus Group in 1999, then by Indian steel producer Tata Steel in 2007. Tata Steel sold their long products division, which includes bars production, in 2016 to holding company Greybull Capital. Greybull Capital re-established British Steel to operate the plants, but it went into liquidation under a court receiver just three years later. The company was then sold to Chinese holding company Jingye Group.
While there remain many steel products plants and recycled steel smelters, the only virgin steel plant in the UK is located in Scunthorpe. Jingye in late 2024 signaled intent to sell that plant. By early 2025, with no competitive buyers and the national government rejecting a buyout at Jingye's asking price, plans emerged to close the plant instead. The Parliament was recalled and an emergency law was passed to effectively seize the plant. Business Secretary Jonathan Reynolds was handed sweeping powers over day-to-day operations, including the power to revert any layoffs. Statements revealed that nationalization of the plant is a likely outcome. While Reynolds made promises to pay shareholders in that case, he presented arguments that "the market value is effectively zero."