The UK government has published a draft bill allowing the government to take control of steel assets at risk of closure—what is the deeper significance of this move?

The essence of敬业 Group’s approach lies in realism: after shutting down blast furnaces in the UK, it intends to retain upstream and downstream facilities in Britain while sourcing steel billets from China—an arrangement that would be more economical and better aligned with market principles. According to The Times, Jingye Group has already established a plant in China producing rail long products—the very core product of the Scunthorpe steelworks—and has even encouraged some British workers to relocate there. However, the UK Labour government, which took office in July last year, firmly opposes Jingye Group’s plan. Its economic philosophy prioritizes ‘security above all’, and it refuses to transfer strategically critical production capacity—potentially affecting national security—to overseas locations. —Frankly speaking, such concerns are understandable. Several Labour MPs argue that, amid the ongoing Russia-Ukraine war, demand for weapons and military equipment has reached unprecedented levels; moreover, steel produced via blast furnaces remains indispensable for defense and energy transition—key sectors where supply chain resilience is paramount. Outsourcing such supply chains—especially to China, a country many Britons distrust—is therefore deemed unacceptable. Media reports indicate that, although Jingye Group still holds equity in British Steel, it has effectively lost control. The UK Labour government has forcibly appointed officials as interim CEOs and allocated special funds for support. Yet this forced takeover blatantly violates market principles—a ‘piratical’ act amounting to substantive expropriation of investor assets. Such behavior seemed more plausible in countries like India—but few expected it from an established capitalist empire. The Chinese Embassy in the UK has also taken note of this development. As part of the UK-based metals giant Corus Group (now Tata Steel Europe), the Scunthorpe steelworks has changed hands multiple times: acquired by India’s Tata Steel in 2007; later sold to Greybull Capital; and then sold to China’s Jingye Group in 2019. Jingye naturally sought to sell the facility again—but evidently found no private buyer willing to take it on, leaving closure as the only option. Should Scunthorpe ultimately shut down, the UK would become the first P5 nation to lose its ‘primary steel’ production capacity—a blow to national prestige that would shatter the pride of Britain’s aging aristocracy. In truth, however, the UK’s industrial decline has been visibly accelerating in recent years—not merely reflected in one steel plant’s demise: ・ Automotive production: output has fallen to its lowest level since the 1950s; ・ Aluminium industry: only one smelter remains operational in the UK; ・ Petrochemicals: Ineos recently closed a refinery accounting for 15% of UK refining capacity; ・ Saudi Basic Industries Corporation (SABIC) has suspended investment in the ethylene cracker unit at its Teesside chemical plant. Since the Thatcher era, UK industry has undergone repeated restructuring. Manufacturing’s share of GDP has plummeted—from 16.67% in 1990 to just 8.59% in 2019. The UK’s shift from real economy to financial services is now an undeniable reality; today, financial services—including insurance and real estate—are the largest contributors to UK GDP. Yet for a country claiming to strengthen industrial resilience, its remaining manufacturing sector—accounting for less than 10% of GDP—is treated as irreplaceable treasure. These industries underpin national security and strategic autonomy: they either supply essential raw materials to other sectors or serve as reservoirs of critical engineering expertise—like load-bearing walls in a building, indispensable and non-removable.

Honda’s closure of its UK factory due to Brexit and strategic shifts toward electrification—why is China becoming a key focus for Honda’s global layout?

Honda announced in 2021 the closure of its UK Swindon plant—the company’s sole four-wheel vehicle manufacturing facility in southern England—and stated its future investment priorities would center on the US and Chinese markets. This decision stems from cost pressures triggered by Brexit-related uncertainties and declining sales across Europe. Yet more significantly, the shutdown reflects Honda’s broader global strategic pivot toward electrification. On February 19 local time, Japanese automaker Honda Motor Co., Ltd. announced it would close its only UK automobile manufacturing plant in Swindon by 2021. This move will result in over 3,500 job losses. Just two weeks earlier, Nissan had also announced the cancellation of plans to produce new models at its UK plant. Although Honda claims the plant closure is unrelated to Brexit—and instead forms part of its global strategic decision-making—analysts view it as a direct response to uncertainty surrounding the UK’s future relationship with the EU, and the resulting pressure on manufacturers. Moreover, beyond Honda’s UK plant closure, industry observers have noted Honda’s clear strategic emphasis on China and the US as its two primary growth markets—a signal worthy of deeper reflection. Brexit uncertainty and declining European sales accelerated Honda’s decision to close the UK plant. On February 18 local time, Honda Motor Co., Ltd. announced it would close its sole UK plant in Swindon by 2021—resulting in approximately 3,500 layoffs. Simultaneously, Honda will cease production of the Civic sedan in Turkey in 2021, though it will maintain operations there. Established in 1985, Honda’s Swindon plant has an annual capacity of around 250,000 vehicles. In 2018, it produced 160,000 units—including its flagship Civic model—accounting for roughly 10% of the UK’s total annual car output. Yet Honda’s annual sales across Europe stand at just over 100,000 units, representing a mere ~1% market share. Although Honda Senior Vice President Ian Howells stated the closure is unrelated to Brexit and forms part of Honda’s global strategy, UK Business Secretary Greg Clark disagrees. Clark contends that uncertainty over the UK-EU relationship has placed months of pressure on manufacturers. Under current arrangements, existing trade rules will remain in force until the end of the 2020 ‘transition period’—unless a new agreement is reached. If Brexit proceeds without a deal, exports from the UK to the EU would face a 10% tariff; additionally, customs procedures and inventory costs would rise. Analysts suggest this partly explains why Honda chose 2021 as the closure date. Furthermore, starting January 2026, tariffs on automobiles exported from Japan to the EU will drop from the current 10% to zero—making it far more cost-effective for Honda to export cars directly from Japan to the EU. Honda is not alone in being affected by UK-EU uncertainty: Jaguar Land Rover has decided to cut 4,500 jobs; Nissan has scrapped plans to produce its main models at its UK plant; and BMW is considering shifting part of its production to the Netherlands. According to data reviewed by Auto Prophet for 2018, stricter new emissions testing standards and falling diesel vehicle prices led to 15.62 million new vehicle registrations in Europe that year. Overall European auto sales declined by 0.04%—the first drop since 2013.

Greggs Announces Plans to Shut Four UK Factories That Could Cost 740 Jobs

5 hours ago

Greggs plans to close four UK factories, potentially affecting 740 jobs, to secure £20 million in annual savings by 2028. The move aims to improve cost-efficiency despite recent sales growth amid rising inflationary pressures.

theguardian

2026-09-30

Greggs Announces Plans to Shut Four UK Factories That Could Cost 740 Jobs

Greggs Announces Plans to Shut Four UK Factories That Could Cost 740 Jobs

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