1.25 billion pound plans for future of Scunthorpe Steelworks could mean up to 2000 job losses
The proposals outline how the operation there would be made greener
British Steel have unveiled 1.25 billion pound plans to make their operations greener which it's thought will mean up to 2 thousand job losses in Scunthorpe
They've been rumours of possible redundancies for several weeks.
The statement says they want to "decarbonise" the steelworks replacing the current blast furnaces with electric alternatives
It's claims that would make them more competitive.
Unions say they're very concerned about the plans
They haven't confirmed the rumoured 2 thousand job losses figure but say they will support employees affected by decarbonisation suggesting there ARE likely to be significant staffing cuts.
Unions say they're very concerned about the plans.
British Steel say it will hold talks with them to discuss their future plans.
It's understood the proposals are dependent on a Government support package being agreed.
British Steel CEO and President Xijun Cao said:
We believe option is to have 2 smaller furnaces
“Our desire to dramatically reduce our carbon footprint, coupled with current market conditions, means we can’t wait and need to transform our business as quickly as possible.
And while decarbonisation will not happen overnight, it’s imperative we take swift and decisive action to ensure a sustainable future for British Steel.
“We studied having one large electric arc furnace based in Scunthorpe, one which was capable of manufacturing all of the steel we require for our rolling mills in the Humber and the North East.
However, such a large furnace would require a new National Grid connection and it is anticipated this would not be available until 2034.
We therefore believe the most viable and timely option is to have 2 smaller furnaces which combine to produce the volumes of steel we require.”
Community Union General Secretary Roy Rickhuss said:
It's vital a meaningful consultation assesses all options
"“Community acknowledges British Steel’s early engagement on proposals to transition to green steel and we welcome the company’s commitment to support our experts to scrutinise their plans."
"It is deeply disappointing however that once again our members first heard of these plans through irresponsible leaks to the media."
“We are deeply concerned by British Steel’s plans for an EAF-only approach at Scunthorpe and Teesside, and it is vital a meaningful consultation takes place to assess all the options to secure the future of steelmaking.
Were they to be realised the plans that British Steel has announced, combined with Tata Steel’s plans, would leave the UK unable to make steel from raw materials and dangerously exposed to international markets.
All options need to remain on the table
Community firmly believes that the blast furnaces continue to be vital in any responsible transition to green steelmaking.
“Even the Government’s own backbenchers recognise that an EAF-only approach is dangerous and foolhardy, with the Conservative Northern Research Group only this weekend urging the Prime Minister to intervene to keep the blast furnaces open.
“All options for decarbonisation must remain on the table, and Community will do whatever it takes to protect our members interests.
With the right commitment from all stakeholders we can deliver a just transition that saves our planet, saves our jobs, and saves our steel.”