British Steel faces the risk of closure! 2,700 workers at risk

The company stated that blast furnaces are no longer financially sustainable due to increased tariffs, market challenges and environmental costs.

CEO Zengwei An emphasized that this decision was inevitable in light of the challenging market conditions the company faces. The GMB union stated that the situation was “devastating for the people of Scunthorpe” and that the government must step in to ensure the future of steelmaking in the region.

British Steel has been owned by the Chinese Jingye Group since 2020. While Jingye has invested over GBP 1.2 billion in British Steel, they have reported financial losses of around GBP 700,000 per day. The company continues to negotiate with the UK government to get support for its operations, but no agreement has yet been reached.

As of today, the company announced that it would begin “formal consultations” with its employees and unions on three options:

1. Closure of blast furnaces, steelmaking operations and Scunthorpe Rod Mill in early June 2025.

2. Closure of blast furnaces and steelmaking operations in September 2025.

3. Closure of blast furnaces and steelmaking operations at a date after September 2025.

Sharon Graham, general secretary of the Unite union, described the potential job losses as “shameful” and stated that the government must develop a sustainable solution to save the sector. Trade and Enterprise Minister Jonathan Reynolds said the government was working tirelessly to reach an agreement with the owners to secure the future of the company.

Gareth Stace, Managing Director of UK Steel, emphasized that the consultation was a “critical turning point for the industry” and added that UK Steel was sounding the alarm, noting that the steel industry was “in crisis”.