Thousands of jobs are in danger after British steel has unveiled plans that can mean that the closing of his two blast furnaces.
In the future, a consultation will be launched for the second largest steel producer of the VK, days after the Chinese owners of the company have rejected a government subsidy with a value of £ 500 million.
British Steel today announced the proposed closure of its two blast furnaces, steel production activities and a reduction in steel rolling mill capacity in Scunthorpe.
The most important shareholder of the company, Jingye, said it had invested more than £ 1.2 billion since 2020 to retain the activities – but emphasized what they called 'continuous production instability' and 'important' financial losses of around £ 700,000 a day.
British Steel said that his blast furnaces and steel programs were 'no longer financially sustainable' – the market conditions, the imposition of rates and higher environmental costs related to the production of low -carbon steel.
The company had sought support from the government for a large capital investment in two new electric bow ovens – but no agreement has yet been reached after months of negotiations.
The three are now being taken into consideration, including the closing of the blast furnaces, steel operations and Scunthorpe Rod Mill in early June.
Also for consultation are the closing of the blast furnaces and steel activities in September or otherwise closing the blast furnaces and steel production activities at a future point after that month.
A steel worker is depicted on one of the blast furnaces of the British steel, now threatened, during 'tapping' in the factory in Scunthorpe
British Steel Chief Executive Zengwei An said today: 'We understand that this is an extremely difficult day for our employees, their families and everyone associated with British Steel.
'But we believe that this is a necessary decision in view of the enormously challenging circumstances that the company is confronted with.
“We continue to use our employees and trade unions, as well as our suppliers and customers during this time.”
This is a crushing new story. More to follow …
