British Steel Risks Collapse With 25,000 Jobs at Stake

British Steel, the country’s second-largest steel producer, is on the brink of collapse unless the government agrees an emergency $38 million loan.

A British Steel works sign is seen in Scunthorpe, northern England, on May 21, 2019. Scott Heppell/Reuters

LONDON—British Steel, the UK’s second-largest steel producer, is on the brink of collapse unless the government agrees to provide an emergency $38 million (30 million pound) loan, two sources close to the situation said.

British Steel said negotiations had not concluded and it continues to work with all parties to secure the future of the business. It also reassured employees that their salaries will be paid in full for May.