British Steel, owned by China’s Jingye, has announced plans to close its blast furnaces and steelmaking operations in Scunthorpe. The decision risks approximately 2,700 jobs and has been labeled “devastating” by unions. Despite an investment of over £1.2 billion by Jingye since 2020, the Scunthorpe site has reportedly incurred daily losses of £700,000. The company attributes this financial instability to challenging market conditions, the imposition of tariffs, and increased environmental costs associated with high-carbon steel production.

The proposed closures, expected to affect between 2,000 and 2,700 workers out of a total workforce of about 3,500, include three options: immediate closure of the blast furnaces, steelmaking operations, and Scunthorpe rod mill; closure of the blast furnaces and steelmaking operations by September; or future closure. British Steel’s CEO, Zengwei An, acknowledged the difficulty of the decision but stated it was necessary due to the significant challenges facing the business.

Last month, steel unions requested an additional £200 million from the government to support Scunthorpe and prevent the closure of the UK’s last remaining blast furnaces until electric alternatives are built. However, Sky News reported that Jingye had declined a £500 million state rescue package offered by the business secretary, Jonathan Reynolds.

Unions, including Community, GMB, and Unite, have called on the government to intervene, emphasizing the critical role of steel in national security and the potential catastrophic impact of losing Scunthorpe’s production facilities. Linda McCulloch of Unite stressed the urgency for the government to utilize the £2.5 billion allocated for the steel industry to prevent a disastrous outcome.

Source: https://www.theguardian.com/business/2025/mar/27/british-steel-scunthorpe-blast-furnaces-closure-plans-job-risk