More than 2,000 jobs in British Steel may be at risk when the company announced that it was in conversation when the furnaces were in conversation.
British Steel, the country’s second largest producer, has launched an excessive consultation on the closure of two blast furnace in Skanthorpe. More than half of the company’s 3,500-confusing workforce may be affected.
After the news, it is understood, the firm’s Chinese -origin company Jinge rejected the offer of £ 500M subsidy from the UK government.
The steel industry was hit by one of Donald Trump’s tariff earlier this month, which kept an additional cost of 25 percent on steel and aluminum imports and canceled the orders.
Government data shows that in 2023 the UK economy contributes £ 2.3bn, which is equal to one percent of manufacturing production.
financial Times And Sky said on Wednesday that the government’s offer was turned down by the Trade Secretary Jonathan Reynolds in an attempt to assist infection in the production of green steel.
Jingye said that since British steel was captured in 2020, it has invested more than £ 1.2 billion to maintain operations amidst the ongoing production instability and a “significant” financial loss of about £ 700,000 a day.
It said: “Despite this, blast furnace and steelmaking operations are no longer financially durable due to high environmental costs related to highly challenging market conditions, tariffs and high-carbon steel production.
“The company sought support from the UK government for a major capital investment in two new electric arc furnaces (EAFS).
“However, after several months of conversation, no compromise has been reached.
“As a result, a difficult decision has been taken to consult with employees and consider the proposals to close the blast furnace and steelmaking operations and reduce rolling mill capacity.”
The company will start a formal consultation with its workforce and unions from Thursday.
Zengwei, Chief Executive Officer of British Steel, said: “We understand that this is a very difficult day for our employees, their families and all associated with British steel.
“But we believe that this is an essential decision that faces business given highly challenging circumstances.
“We are committed to connect with our suppliers and customers during this time with our workforce and unions.”
Unions asked the government to help the community secure the future of British Steel, GMB and Unite called the announcement “destructive” news.
Industry Minister Sara Jones told the Business and Business Selection Committee that they were “still in talks”, but reports suggest that Jinge was looking for more than £ 1bn from the aid package.
Roy Rickhas, general secretary of the Community Trade Union, issued a statement noticeing the “dark day” for the industry.
He said, “We urge the Jinge and the UK government to go back to the table to resume the conversation before it is too late.”
“Cruslie, jinge has not denied maintaining blast furnace during an infection for low carbon steelmaking, if they can secure the support of the government.
“Closters in Scanthorepe would represent a hammer shock for communities that were created on steel, and where the industry still supports thousands of jobs and is thousands and more through comprehensive supply chains.”
The community unveiled its plan in February, aimed at achieving the future for Scanthorpe sites amidst a change towards greenery production.
