British Steel is facing a difficult decision as it launches a consultation that could potentially lead to the closure of its two blast furnaces in Scunthorpe, putting thousands of jobs at risk. The company cited tough market conditions, tariffs, and higher environmental costs as reasons for the potential closure, leading to between 2,000 and 2,700 jobs being in jeopardy. CEO Zengwei An described the decision as necessary given the challenging circumstances the business is facing.
Owned by Chinese firm Jingye since 2020, British Steel’s Scunthorpe site currently employs around 3,500 individuals. Jingye claims to have invested over £1.2bn into British Steel since acquiring it to sustain operations, with reported daily financial losses of approximately £700,000. Despite discussions with the UK government for support, no agreement has been reached yet. British Steel expressed willingness to collaborate with the government to explore options for the business’s future.
In response to the potential job losses, unions like GMB and Unite have expressed concern and called on the government to intervene. Unite general secretary Sharon Graham labeled the situation as “a disgrace” and urged for a sustainable approach moving forward. Business and Trade Secretary Jonathan Reynolds acknowledged the worries of the staff and committed to working tirelessly to secure the company’s future and safeguard taxpayers’ money. UK Steel Director General Gareth Stace characterized the consultation as a critical moment for the steel sector, emphasizing the industry’s crisis and the need for urgent attention
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