Trent Refractories Welcomes The Steel Industry Act 2025

1st May 2025

The Steel Industry (Special Measures) Act 2025 is emergency legislation enacted by the UK Parliament in April 2025 to safeguard the nation's primary steelmaking capabilities, particularly at the British Steel plant in Scunthorpe. This law grants the government authority to intervene directly in steel company operations when essential assets are at risk of closure, ensuring their continued and safe use in the public interest.

Background and Purpose
The Act was introduced following British Steel's owner, Jingye Group, announcing plans to cease operations at the Scunthorpe blast furnaces—the UK's last remaining facilities for producing virgin steel. Shutting down these furnaces would have rendered them permanently unusable, effectively ending primary steel production in the UK and jeopardizing approximately 2,700 jobs.

Key Provisions

• Government Intervention: Empowers the Secretary of State for Business and Trade to issue directives to steel manufacturers to maintain operations of critical assets when their continued use serves the public interest.
• Enforcement Measures: Non-compliance with government directives is a criminal offense, punishable by up to two years in prison. The government can also seek High Court injunctions to enforce compliance.
• Asset Control: If a company fails to adhere to directives, the government can assume control of the assets to ensure their operation, with incurred costs recoverable from the company.

Legislative Process
In an unusual move, Parliament was recalled from its Easter recess to pass the bill in a single day, reflecting the urgency of the situation. The legislation received unanimous support in both the House of Commons and the House of Lords.

Industry Response
Industry body UK Steel welcomed the Act, emphasising the critical need to keep the blast furnaces operational to prevent irreversible damage and to maintain the UK's steel production capabilities. They praised the government's swift action and called for a long-term solution to secure the future of the Scunthorpe site.

Broader Context
The legislation is part of the government's broader strategy to support the steel industry amid global challenges, including international competition and recent trade tensions. Notably, a new UK-US trade deal has eliminated the 25% tariff on UK steel exports to the US, providing significant relief to the sector.

Trent Refractories welcome the intervention by the UK Government to secure virgin steel production in the United Kingdom. It will mean the steel plant in Scunthorpe will continue to operate as the government decides on a long-term strategy, and steelmaking in the UK more broadly. This intervention will also keep the Scunthorpe blast furnaces open and protect both the UK's primary steelmaking capacity and the 3,500 jobs involved. It will also protect the international interests of the UK across a number of strategic areas.

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