Even worse, in early May, British Steel announced a consultation on the fate of its two Scunthorpe blast furnaces. We estimate that this action would place between 2,000 and 2,700 jobs at risk. The announcement comes as the company, owned by Chinese firm Jingye since 2020, explores its future options amid challenging business conditions. The Scunthorpe site is currently home to 3,500 jobs. The threat of job loss has raised real alarm bells with workers and unions.
The UK Government is in active talks about what support UK taxpayers can give to help secure a future for British Steel. They have been unable to come to any agreement thus far. British Steel’s chief executive, Zengwei An, emphasized the difficult situation facing the business, describing the potential closures as “a necessary decision given the hugely challenging circumstances the business faces.”
“This announcement of job losses is quite simply a disgrace. British Steel is guilty of trying to hold the government to ransom, while using its dedicated workforce as pawns.” – Sharon Graham
The first option consists of shutting down the blast furnaces and steelmaking operations as well as the Scunthorpe Rod Mill by no later than early June 2025. The second option includes a full closure of the blast furnaces and steelmaking plants by September 2025. The third alternative considers a shutdown at some later date, after September 2025.
The consultation and possible closures have been met by an equally strong response from unions and UK workers. The GMB union described the announcement as “devastating” for Scunthorpe residents. They noted that this decision would be very damaging to the local community and economy.
“Devastating news for the people of Scunthorpe.” – GMB union
British Steel remains committed to collaborating with the UK Government in the process. Collectively, they’ll work to determine the most realistic paths to keep the business alive. Without a deal for the moment though, the past is cast in doubt for many workers and their families.