British Steel axes Scunthorpe furnaces for eco alternative - 2,000 jobs at risk
British Steel is set to axe Scunthorpe's blast furnaces
WIKICOMMONS
Two thousand jobs are at risk in Scunthorpe after British Steel announced it is shutting down its blast furnaces.
The owners of British Steel, China's Jingye Group, confirmed the decision this afternoon.
The business outlined plans to shut down the furnaces in order to replace them with two new electric arc furnaces which which will help it looks to transform into a "green and sustainable company".
One new electric arc furnace will be built in Scunthorpe and another at its Teesside plant.
British Steel is set to confirm the decision this afternoon
CHRIS ALLEN
The construction of the new furnaces will take between two and three years.
Unions have warned that the proposals would lead to as many as 2,000 job losses.
Community union general secretary Roy Rickhuss said: “Were they to be realised, 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.
“Community firmly believes that the blast furnaces continue to be vital in any responsible transition to green steelmaking.”
British Steel chief executive Xijun Cao said: “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.
The blast furnaces run at a daily loss
CHRIS ALLEN
“Detailed studies show electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future.”
British Steel is thought to be running at a loss of £30million a month.
The UK Government has helped to provide a finance package for British Steel to secure its future.
The Government argues blast furnace plants are not economic and run at a daily loss.
Officials also believe that they hinder the UK's bid to be net zero by 2050.
Earlier this year the Department secured a £500million rescue package for rival firm Tata, which was suffering its own losses.
The deal saw Tata agree to close its two blast furnaces in Port Talbot and replace them with electric arc furnaces. There are 3,000 jobs at risk at Tata.
The agreement with British Steel closely mirrors the one with Tata.
A British Steel spokesman said the company was committed to "providing long-term, skilled and well-paid careers for thousands of employees and many more in our supply chains".