Up to 2,700 jobs are at risk at British Steel’s Scunthorpe steelworks after its Chinese owner, Jingye Group, announced plans to shut down the site’s two remaining blast furnaces and scale back rolling mill operations.
The decision marks a major blow to the UK’s industrial heartlands and follows the rejection of a £500 million state support package. British Steel, the UK’s second-largest steelmaker, cited mounting financial pressures, high environmental costs and the ongoing impact of Trump-era tariffs as the reasons behind the move.
In a statement, the company said: “Challenging market conditions and significant ongoing financial losses have made it unsustainable to continue operating the blast furnaces and wider steelmaking operations.”
British Steel has entered a consultation process with its 3,200-strong workforce and trade unions to determine the scale of redundancies. The closures are expected to result in job losses ranging from 2,000 to 2,700, depending on how the plans progress.
Chief executive Zengwei An described the announcement as “an extremely difficult day for our staff, their families and everyone associated with British Steel,” but added that “this is a necessary decision, given the hugely challenging circumstances the business faces.”
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