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The UK government received control of English steel after the emergency legislation on Saturday. Secretary of Jonathan Reynolds, ministers, Lincolnshire’s flagship in Lincolnshire’s two explosions on Scunthorpe website to provide two explosions furnaces, he said.
The government is now in a difficult task to carry out an industrial operation in a complex and very expensive industrial operation.
The closure of the hearths would be a historic turning point for the shutdown of England, the country’s iron ore and coal to leave the country without the industrial revolution and leave the country without the ability to leave coal.
How much will this taxpayer cost?
The government has stopped the nationalization, but the use of English steel operations will be a significant value of the UK’s taxpayer.
Reynolds said the company’s market value is zero. However, he is exposed to high losses and the taxpayer will be forced to be behind these losses. The Chinese owner of the Chinese Steel, Jingye, said the company lost more than £ 700,000 a day and no longer “financially useful.”
British Cheline’s accounts showed that by the end of 2022 damage to £ 1,7 billion pounds. In 2023, in 2023, he lost a tax loss before £ 231m.
It will be expensive simply taking into account the price of plant, raw materials and high energy costs. Donald Trump’s US management’s steel import duties are another problem.
On Sunday, Reynolds compared the government’s annual casualties to the value of about 230 mn of the government. This said to Sky News, he said, “Easy to £ 1 billion.”
Why did the government feel it should be moved?
Reynolds, after a few months of negotiations with CINGERY, in recent days, the company was to cancel the intention of the company and refuse to pay for the additional order for raw materials.
In order not to cool inside the plant, it was necessary for the new raw materials that included iron and coal. It is impossible to re-turn them, but it is an expensive and long process.
The government also eats to maintain the basic steel production capacity of England. The English steel closed the two steel would leave England as the only G7 country without the ability to hold steel from scratch. The move was prevented from the company’s losses in about 3,500 jobs.
Reynolds said the government offered to pay for the materials, but Jingye offered to pay hundreds of millions of pounds for ministers without any conditions. This proposal did not commit the money and other assets were not “immediate delivery”.
Chancellor Rachel Reveves, close to the beginning of the previously, in the way of thinking about any action against the nationalization, “Whitehall said he was trying to drive a significant change in Whitehall.
“He did not hand over the money of taxpayers (jingye) with his conscience,” he said.
What is the future for the UK steel sector?
The movement to manage English steel is just a space solution. The British steel industry hinders over ten years, high energy and operating costs.
Britain, the Price Report Agency Colin Richardson, Argus Media, “Regardless of the production route,” he said.
The biggest problem decarbonization. British steel blast stoves should be close to help the UK respond to the hidden of net zero carbon emissions by 2050.
The government has allocated £ 2.5 billion to support the sector during the transition. Last year, a smaller carbon-intensive electric arc of carbon in a smaller carbon-intensive electric arc area, which is lower than the re-industrial steel, agreed to £ 500 million.
Similar decarbonation plan should take place in English steel, but it will require an important investment. Jingye was directed from the government to a 2 billion pound of £ 2 billion plan to build two electric arc stoves in Scunthorpe.
The transition to electrical arc into the ovens will maintain a steel campaign, but production of primitive steel – to prepare steel from raw materials.
The ministers must also move on energy costs. Richardson, electric arc furnaces “The availability of low carbon costs and the existence of local scraps”, “was not” Panacea “,” the mill has not become energy costs. “
