Steel unions call on government to secure future of Scunthorpe Steel

Unions are calling on the government to secure the future of steelmaking in Northern Lincolnshire, following the news that British Steel's owner is launching a fresh consultation on closing Scunthorpe's blast furnaces.

Jingye, who operate British Steel, will launch their consultation in June, or at a later date, should an agreement with the UK government be reached.

Scunthorpe steelworks is the UK's last remaining primary steelmaking facility, and employs thousands of people directly and through extensive supply chains throughout the UK.

A statement on behalf of Jingye says since 2020, they have invested more than £1.2 bn to maintain operations at British Steel, amid ongoing production instability and significant financial losses of around £700k a day.

Investments to date include over £300m in strategic capital projects such as a state-of-the-art mast service centre in Skinningrove, a rail stocking facility and a new billet caster.

Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel.

Steel unions Community, GMB and Unite are coming together to call on the government for support.

Community General Secretary Roy Rickhuss CBE said:

"This is a dark day for our steel industry and for our country. We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late."

"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."

"If the government chooses to let Scunthorpe die it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is our only steelmaker than can produce the construction steels the country needs for our roads, railways, schools and hospitals."

Linda McCulloch, National Officer for Unite the Union, said:

"This is devastating news and there is now a duty on the Government to do everything it can to prevent a catastrophic outcome. As the last primary steelmaking facility in the UK, Scunthorpe is a vital strategic asset which we cannot afford to lose."

Charlotte Brumpton-Childs, GMB National Officer, said:

“This is devastating news for the people of Scunthorpe and the whole of UK steelmaking.

“But it’s not too late: we urge Jingye and the government to do everything in their power to save this vital domestic industry.”

"Deeply worrying time"

In response, Jonathan Reynolds, the Business and Trade Secretary said “I know this will be a deeply worrying time for staff and, while this is British Steel’s decision, we will continue working tirelessly to reach an agreement with the company’s owners to secure its future and protect taxpayers’ money.

“We’ve been clear there’s a bright future for steelmaking in the UK. We’ve committed up to £2.5 billion to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.”

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