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British Steel closure: trade body in plea for ‘swift resolution’

An enormous steel plant in the middle of Scunthorpe producing all sorts of large scale steel items, seen from above - a trade body is asking government to reach a resolution with British Steel's owner.
Up to 2,700 jobs are at risk after British Steel’s announcement to close two furnaces (Image: Andrew Norris via Dreamstime)

The main trade association representing the structural steel sector in the UK said “it is dearly hoped” that the government and the Chinese owner of British Steel will reach an agreement to invest in new electric arc furnaces and secure the future of the business.

Last week, British Steel launched a consultation that could result in the closure of two blast furnaces in its Scunthorpe plant, putting up to 2,700 jobs out of 3,500 at risk.

The company said that despite a £1.2bn investment from Jingye since it took over ownership in 2020, the blast furnaces and steelmaking operations “are no longer financially sustainable” because of difficult market conditions, new tariffs and higher environmental costs.

The British Constructional Steelwork Association (BCSA) said the Scunthorpe closure announcement is “clearly distressing” for workers and their families, but also for the wider supply chain, specifically the construction industry, where most of Scunthorpe’s production is used.

BCSA said: “The UK steel-making sector is in transition from blast furnace production to steel manufactured by electric arc furnaces and the announcement by British Steel at this time presents a real risk for the UK in the medium term and beyond.

“The BCSA sincerely hopes that this consultation will quickly reach a positive outcome in terms of maintaining the capability of steel production in the UK, and to allay the uncertainty for all involved. 

“During this time, the BCSA will continue to work diligently with the steel supply chain to ensure our members continue to support UK and Irish construction projects and jobs.”

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