British Steel is considering shutting down its two blast furnaces in Scunthorpe, putting up to 2,700 jobs at risk. The company says high operating costs, tariffs, and environmental regulations have made the furnaces unsustainable.
Since acquiring British Steel in 2020, Chinese owner Jingye has invested over £1.2 billion but continues to face daily losses of around £700,000. Talks with the UK government about financial support for new Electric Arc Furnaces (EAF) have not resulted in a deal.
The potential closure has raised concerns among unions and industry leaders, who warn it could end the UK’s ability to produce primary steel, affecting supply chains and infrastructure projects. The government has pledged up to £2.5 billion for the steel industry but has yet to finalise a plan for Scunthorpe.
British Steel is consulting on three possible timelines, with the earliest furnace shutdown by mid-2025. The company says discussions with workers, unions, and officials are ongoing.
