Veteran industrialist Lovell to chair publicly owned British Steel

The government has recruited Alan Lovell, the industrial veteran, to chair British Steel months after it was formally taken into public ownership.

Sky News has learnt that Mr Lovell, who currently chairs the Environment Agency, to head British Steel's board amid an ongoing dispute with Jingye Group, the company's former owner.

Whitehall sources said the appointment was expected to be announced later on Friday.

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Mr Lovell ran half a dozen companies in the construction and renewable energy sectors, including Costain Group, during a long executive career.

He has since chaired or served as a non-executive director of a number of other organisations, including Lloyd's of London and the Consumer Council for Water.

Mr Lovell had already announced his decision to stand down as chair of the Environment Agency, which will form part of a wider shake-up of water regulation being planned by ministers.

Jonathan Reynolds, the business secretary, is understood to have signed off Mr Lovell's appointment in recent days.

"Alan is bringing a wealth of experience to British Steel at a crucial time for the business," Mr Reynolds said in a statement issued to Sky News.

"He understands what it takes to lead companies through major change, and I know he will work closely with the workforce, the board and local communities as British Steel enters its next chapter.

"When we stepped in to secure British Steel's future, it was about far more than a single company.

"It was about backing the industries, skills and communities that will help drive Britain's reindustrialisation.

"I'm pleased Alan has agreed to take on this role and look forward to working with him to secure a strong future for steelmaking in the UK."

British Steel's transition to public ownership came 15 months after ministers seized operational control of the business from Jingye.

The Chinese company is demanding as much as £1bn in compensation, with a formal legal dispute expected to be triggered unless a bilateral settlement can be reached.

Prior to the Labour government's move in April last year, Jingye had been threatening to close Scunthorpe's two blast furnaces, with the potential loss of thousands of jobs, and replace them with a new electric arc furnace.

Along with Speciality Steel UK (SSUK), which was part of the tycoon Sanjeev Gupta's steel empire, taxpayers have so far spent more than £650m subsidising the two steel companies over the last 18 months.

Mr Reynolds has also sanctioned the appointments of a quartet of executive directors, including a former boss of Balfour Beatty, to British Steel's board.

A Whitehall source said Mr Lovell's appointment "supports our ambition to secure a long-term future for UK steelmaking as part of Britain's wider reindustrialisation, helping ensure we retain the industrial capability, skills and supply chains needed to support growth, resilience and national security".

In a statement, Mr Lovell said: "I am proud to have been appointed into this role at such a pivotal time for the company.

"The world-class steel we produce is vital to Britain's defence, infrastructure and buildings, and is a cornerstone of the UK economy.

"Together with my fellow board members, I am looking to the future with great optimism.

"We are focused on building a sustainable business for our dedicated employees, valued customers and suppliers, and the tens of thousands of people in our supply chains.

"With the resolute support of the UK government, and the highly skilled team at British Steel, we will deliver the world-class steel Britain needs now and for decades to come."

The government is expected to run a process to sell British Steel back to the private sector at some point next year.

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