Thousands of jobs under threat in British Steel closure plans

Thousands of jobs are at risk after a steelmaker unveiled closure proposals.

British Steel has launched a consultation on the future of its Scunthorpe blast furnaces and steelmaking operations.

Bosses say the ventures are “no longer financially sustainable due to highly challenging market conditions... (and) significant losses of around £700,000 a day”.

Operations – which include a rod mill – could close by as early as June 2025, affecting as many as 2700 jobs.

Union Unite has branded the plans a “disgrace”, with counterpart Community calling it “a dark day for our steel industry and our country”.

The announcement follows the breakdown of talks between British Steel owner Jingye and the Government over investment support for new electric arc furnaces - including a planned Teesside endeavour - and comes amid reports the firm recently rejected a £500 million Westminster rescue package.

Reacting to the news, Tees Valley mayor Ben Houchen, who previously worked with British Steel officials on electric arc proposals for the company's plant at Lackenby, near Redcar, warned the Government it must act quickly to prevent the steel sector's “flame going out on their watch”.

Unveiling the firm's consultation plans, Zengwei An, British Steel chief executive, 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.”

However, Sharon Graham, Unite general secretary, accused the company of "trying to hold the Government to ransom", and ordered bosses to revive discussions with Westminster.

She said: “The Government has clearly made an offer to invest heavily in British Steel.

“This offer comes with long-term job guarantees - anything less would be a complete misuse of taxpayers’ money.

“British Steel must now withdraw its job threats and work with the Government and Unite on a sustainable way forward.”

Roy Rickhuss, Community union general secretary, added: “The closures at Scunthorpe would represent a hammer blow to communities built on steel.

“At this critical juncture, Labour must do everything it can to secure the future of steelmaking at Scunthorpe - it would be unthinkable for them to let it die on their watch.

“If the Government chooses to let Scunthorpe die, it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is the only steelmaker that can produce the construction steels the country needs for our roads, railways, schools and hospitals.”

And mayor Houchen called for a similarly swift response on Teesside, urging the revival of electric arc plans.

He added: “We had a serious deal on the table, which would have secured jobs, attracted investment and delivered a long-term future for green steelmaking in the UK.

“For whatever reason, that deal was quietly dropped (and) we ended up with unworkable proposals in Scunthorpe.

“Teesside is ready. The plans are in place, planning approved and grid capacity available.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →