British Steel appoints interim leaders, as UK government races to save last crude steel producer

British Steel announced on April 14 the appointment of Allan Bell as interim chief executive officer and Lisa Coulson as interim chief commercial officer with immediate effect, the decision taken to "ensure consistent and professional leadership at British Steel's Scunthorpe site."

Over the weekend, in an emergency meeting, the UK government approved a bill that effectively gave the UK government control of British Steel, allowing the company to avoid being shut down for good and to continue to produce crude steel.

Bell and Coulson have been working in British Steel for fourteen and nineteen years, respectively, with Bell as chief commercial officer and Coulson as director of marketing and strategy.

"Our immediate priorities are securing the raw materials we need to continue blast furnace operations, ensuring we have the dedicated personnel to run those furnaces, and maintaining the highest levels of health and safety for our workforce," Bell said. "We look forward to working in partnership with our colleagues in government, the trade unions and the workforce here in Scunthorpe."

"The next and most immediate step is securing the iron ore and coking coal needed to keep the furnaces operating. If the furnaces cool down, it is virtually impossible for them to be restarted," UK Steel Director General Gareth Stace said on April 14.

"We applaud the Herculean efforts of officials and British Steel staff to secure these supplies. Dozens of other steel companies have offered assistance and materials, demonstrating that, at times of crisis, the sector comes together as one. The success of our steel industry sits above any individual business," he added.

Stace, in a separate statement on April 14, also welcomed the appointment of Allan Bell and Lisa Coulson at the helm of the company.

"The appointment of new management to British Steel means a new chapter can open in the company's operations," he said. "We can now look with more confidence to the future -- while the Government's Steel Bill is vital in the short term, it must now find partner investors who can secure the long-term viability of steelmaking at this business," he said.

Jingye, British Steel's Chinese owner, has indicated several times in March that the company is incurring losses exceeding GBP700,000 ($950,000) per day and is no longer "financially viable." The company has requested around GBP1 billion to facilitate its transition from a blast furnace-based operation to an electric arc furnace-based model.

British Steel has been in discussions for months to secure government funding for this transition, which aims to replace the 3 million mt/year blast furnaces that contribute significantly to the company's CO2 emissions.

All major blast furnace-based steel producers in Europe are facing pressure to decarbonize in order to meet new legislation and carbon neutrality targets, as countries struggle to maintain their margins due to rising costs, overcapacity and now also the new 25% tariffs from the US.

In the UK, energy costs are higher for steel production, and the UK Steel Association has repeatedly called for affordable energy solutions to ensure industry competitiveness and bolster the UK's steel production capabilities.

Having produced steel for 160 years, British Steel manufactures wire rods, sections, special profiles, rail, and semi-finished products utilized across various sectors, including construction, automotive, engineering, earthmoving, and mining.

British Steel supplies up to 95% of the UK's network rails and provides other steelmakers in the UK with semi-finished products for further processing, such as slabs for making steel plates and wire rods.

British Steel's plant in Scunthorpe is the only steelmaker in the UK that still produces crude steel after Tata Steel closed all its blast furnaces at Port Talbot in South Wales. British Steel operates two furnaces: the Queen Anne Blast Furnace and the Queen Bess Furnace.

Platts, part of S&P Global Commodity Insights, assessed the weekly UK hot-rolled coil price at GBP530/mt DDP West Midlands April 10, steady from the start of 2025.