The UK government is reportedly facing the prospect of spending billions more on British Steel as ministers move to fully nationalize the company, according to a Politico report citing multiple steel industry sources.
During The Royal Speech on Wednesday, May 13, King Charles said the UK government will take all necessary measures to protect domestic steel production. In addition, as previously reported by SteelOrbis, the UK Government has said it is preparing legislation that would allow the state to ownBritish Steel as part of a wider effort to secure the country's steel production capacity .
The UK Government has already spent some £419 million to support the loss-making steelworks since taking control of the Scunthorpe steelworks almost a year ago.
Total government spending on British Steel could top £1.5 billion by 2028 if current levels of support continue, according to a March National Audit Office report.
Conversion to EAF is expected to require major investment
Industry sources have indicated that the largest future costs are likely to be associated with the conversion of the Scunthorpe site to an electric arc furnace (EAF) steelmaking operation. Several steel industry representatives have estimated that the transition will require at least £1bn of additional investment.
One senior industry source described the potential nationalization as
