British Steel plans to close its blast furnaces in Scunthorpe, which would reportedly put around 2,000 jobs at risk.
The plans, which are subject to government approval, will see the firm install two electric arc furnaces at its headquarters in Scunthorpe and a manufacturing site in Teesside.
The closures are part of a £1.25bn proposal to shift to cleaner, more sustainable energy and slash the firm’s carbon emissions. It expects the new furnaces to be open in late 2025.
Manufacturing jobs
Parts of the Scunthorpe site are expected to become vacant, and British Steel said it would work with North Lincolnshire Council on a “masterplan” to attract new businesses and jobs to the site.
The company, which is owned by Chinese steelmaker Jingye Group, has not confirmed how many jobs are expected to be affected by the move, but the BBC reported that around 2,000 jobs could be at risk.
British Steel has started preliminary talks with trade unions and said it would support employees affected.
Roy Rickhuss, general secretary of Community, a union representing UK steelworkers, told the BBC he was “deeply concerned” by the plans to switch to only electric arc furnaces.
“The plans that British Steel has announced, combined with Tata Steel’s plans, would leave the UK unable to make steel from raw materials and dangerously exposed to international markets,” he said.
Paul Nowak, general secretary of the TUC, said: “Workers won’t stand back and watch as Britain’s steel industry is dismantled in real time.”
British Steel CEO and president Xijun Cao said: “Decarbonisation is a major challenge for our business but we are committed to manufacturing the home-made, low-embedded carbon steel the UK needs.
“We have engaged extensively with the public and private sector to understand the feasibility of producing net zero steel with our current blast furnace operations. However, thorough analysis shows this is not viable.
“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future. It would also ensure we can provide our customers with the steel they require.”
North Lincolnshire Council said thousands of green jobs could be created in Scunthorpe, with the development of a 300-acre advanced manufacturing park on the site.
Cllr Rob Waltham, leader, North Lincolnshire Council, said: “There is a huge opportunity to create something new, attracting innovative technology companies and well-paid jobs here to Scunthorpe on an underdeveloped site of industrial heritage.
“The transition to net zero must be through taking opportunity not managed decline – taking advantage of the green opportunities globally while harnessing our engineering skills and capabilities locally is the future.”
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