British Steel is launching a consultation that could see the closure of its two blast furnaces at Scunthorpe, affecting between 2,000 and 2,700 jobs.
The company said the blast furnaces were “no longer financially sustainable” due to tough market conditions, the imposition of tariffs and higher environmental costs.
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.
British Steel has been owned by Chinese firm Jingye since 2020 and the Scunthorpe site currently employs 3,500 people.
British Steel has been in discussions with the UK government for support for the operation but no deal has been agreed.
The company said it would begin “formal consultation” with its workforce and unions from today over three options.
One is the closure of the blast furnaces, steelmaking operations and Scunthorpe Rod Mill by early June 2025.
The second is the closure of the blast furnaces and steelmaking operations in September 2025.
The third is a closure of the blast furnaces and steelmaking operations at a future point beyond September 2025.
BBC News
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