Fears for Scunthorpe steelworks jobs as consultation launched on closure

British Steel's Chinese owner Jingye is launching a consultation on the closing of its blast furnaces at Scunthorpe steelworks, sparking fears for thousands of jobs at the site.

Unions the GMB, Community and Unite have called on the Government to help secure the future of British Steel, which has said the closure could come at a later date if an agreement is reached. Jingye, which pointed to the impact of tariffs among the reasons for the decision, says it has invested more than £1.2bn in British Steel since it took over in 2020 and has incurred losses of about £700,000 per day.

It said: "Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel. The company had sought support from the UK Government for a major capital investment in two new electric arc furnaces.

"However, following many months of negotiations, no agreement has been reached. As a result, the difficult decision has been made to consult with employees and to consider proposals to close the blast furnaces and steelmaking operations and reduce rolling mill capacity."

British Steel chief executive Zengwei An said: "We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. But we believe this is a necessary decision given the hugely challenging circumstances the business faces. We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time."

News of the consultation follows a Next Page

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