Blitz Bureau
British Steel has said that it is planning to shut its two blast furnaces and steelmaking operations in the northern England town of Scunthorpe, after its Chinese owner Jingye failed to agree a rescue package with the UK Government, reported AP.
Unions called on the Government to help secure the future of the company, which Jingye said is suffering daily losses of around 700,000 pounds ($900,000) despite the Chinese firm investing more than 1.2 billion to maintain operations since its takeover of British Steel in 2020.
The company, Britain’s secondbiggest steelmaker, blamed “highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel.” British Steel said it is consulting with unions over the decision to close the blast furnaces and steelmaking operations and reduce rolling mill capacity, potentially as early as June. Over 2,000 jobs are potentially at risk.
The company had sought support from the Government for a major capital investment in two new electric arc furnaces, which would emit far less carbon into the atmosphere, but no agreement was reached after months of negotiations.
“This is a dark day for our steel industry and for our country,” said Roy Rickhuss, the general secretary of the Community union. “The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains.”
