British Steel confirms 260 jobs at risk amid coke oven closures
British Steel announced 260 jobs are at risk amid proposals to close its coke ovens at its plant in Scunthorpe.
The firm said the UK remains “uncompetitive” compared to rival markets with energy and carbon costs “some of the highest” globally.
It said it had seen a £190m rise last year and the facilities were “reaching the end of their operational life”.
A spokesperson for the firm, owned by Chinese steelmaker Jingye after a £1.2bn buyout in 2020, said “decisive action” was needed to tackle surging inflation and improve green transition.
The announcement came just months after auditors Mazars resigned in a dispute over fees for its services.
Officials are set to fly to China this week amid talks over a state bailout, with Sky News reporting a possible £300m grant could take the government’s support to £1bn.
Chief executive Xifeng Han said steel was “vital to modern economies” and demand was set to rise.
“British Steel has a crucial role to play in ensuring the UK has its own supply of high-quality steel,” he said.
“To make sure we can deliver the steel Britain requires, we’re undergoing the biggest transformation in our 130-year history.”
How have unions and politicians reacted?
How have unions and politicians reacted?
Unions have blasted the move with Unite general secretary Sharon Graham calling Jingye “greedy”.
Site convenor Martin Foster urged the company to “take a breath” and not rush the decision.
Jonathan Reynolds, shadow business secretary, said the situation “could not be more serious”.
He said Labour would work to “keep well-paid steel jobs in the UK for decades”.
Commenting ahead of the announcement, Reynolds described the industry as “the bedrock of many communities across the UK”.
At a Politico event last night, business secretary Kemi Badenoch defended her “nothing is a given” remark over steel’s future.
Badenoch said: “We do want to support the steel industry.
“If anyone adds up all the money we’ve spent we can see the government is doing every single thing it can and will continue to do so.
“What I will tell people who live in those communities and work in those businesses is that we’ve got their backs and we’ll do everything we can to support them.”
A government spokesperson said the news was “very disappointing” while negotiations were ongoing.
They added: “We stand ready to support employees impacted by British Steel’s decision and will continue to work with the company to try and find a decarbonised, sustainable and competitive solution for the business and the sector, which plays a vital role in the economy.”
Han said Jingye was “extremely grateful” for the government’s support and wanted to build a “secure future” for the firm and its employees.
He added: “We’re disappointed at having to make such proposals but are confident they will support a successful transformation.”