End of British steel?

The future of steelmaking in the UK is uncertain after British Steel started a consultation for the closure of two blast furnaces at Scunthorpe.

Up to 2 700 jobs are at risk with the industry body UK Steel warning closure would leave UK customers dependent on international supplies. The UK would be the only G7 member incapable of producing its own virgin steel.

British Steel is a long steel products business founded in 2016 with assets acquired from Tata Steel Europe, firstly by Greybull Capital and then China’s Jingye Group in 2020.

Support package

The consultation for closure follows the collapse of talks between Jingye and the government over a support package to cover the cost of retaining the blast furnaces until replacement electric arc furnaces are built. The owners are said to be want £ 1 billion (EUR 1.2 billion) in Government support with ministers offering around half that.

The deal would be similar to that agreed with Tata Steel in South Wales last year to bridge the gap after it closed its final furnace in September. The Community trade union called on ministers to nationalise the company if a deal cannot be reached with Jingye.