Between 2,000 and 2,700 jobs could be at risk if British Steel’s two blast furnaces at Scunthorpe close.
The company claimed that because of the difficult market conditions, tariffs, and increased environmental costs, the blast furnaces were “no longer financially sustainable”.
British Steel chief executive Zengwei An said it was “a necessary decision given the hugely challenging circumstances the business faces”.
The GMB union called it “devastating news for the people of Scunthorpe” and called on the government to do “everything possible” to secure the future of steelmaking at the site.
About 3,500 people are currently employed at the Scunthorpe plant of British Steel, which has been controlled by the Chinese company Jingye since 2020.
According to Jingye, it has lost almost £700,000 every day since 2020 and has invested over £1.2 billion in British Steel to keep it operating.
Although no agreement has been reached, the firm has been in talks with the UK government to get assistance for the project..
The company said it would begin “formal consultation” with its workforce and unions from today over three options:
-The closure of the blast furnaces, steelmaking operations and Scunthorpe Rod Mill by early June 2025
-The closure of the blast furnaces and steelmaking operations in September 2025
-The closure of the blast furnaces and steelmaking operations at a future point beyond September 2025.
Unite union general secretary, Sharon Graham, said the potential job losses were “a disgrace” and called for the goverment to work with it on a “sustainable way forward”