More than 2,000 jobs at British Steel could be at risk, after Chinese parent company Jingye rejected a £500m subsidy offer from the UK government – leading to talks over the possible closure of two furnaces.
A public announcement is expected soon, said one trade union on Thursday morning, with more than half of British Steel’s 3,500-strong workforce potentially impacted.
British Steel, the second-largest producer in the country, have begun a redundancy consultation on closing two blast furnaces in Scunthorpe
Sky reported on Wednesday that the government’s offer, made by business secretary Jonathan Reynolds aimed at aiding the transition to producing green steel, had been turned down.
Industry minister Sarah Jones told the business and trade select committee that they were “still in talks”, but reports suggest Jingye were looking for in excess of £1bn from the aid package.
Community Trade Union general secretary, Roy Rickhuss, released a statement noting a “dark day” for the industry.
“We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late,” Mr Rickhuss said.
“Cruciallly, Jingye have not ruled out retaining the blast furnaces during a transition to low carbon steelmaking if they can secure the backing of the Government.
“The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains.”
More to follow…
