REACTION: To British Steel's plans to cut jobs in Scunthorpe
The announcement of around 260 job losses was made today
Last updated 22nd Feb 2023
Workers in Scunthorpe have been told British Steel are looking to cut 260 jobs.
The company who's headquarters are in the town revealed the news earlier after weeks of speculation. The firm is due to close it's coke ovens at it's plant in the town.
The Chinese-owned steelmaker said the move at its site in Scunthorpe was part of its drive to overcome global economic challenges and build a "green and sustainable future".
The company said its bills for energy and carbon increased by £190 million last year, adding that "decisive action" was required because of the "unprecedented rise" in operating costs, surging inflation and the need to improve environmental performance.
British Steel chief executive Xifeng Han said:
"Steel is vital to modern economies and with demand expected to grow over the coming decades, British Steel has a crucial role to play in ensuring the UK has its own supply of high-quality steel.
"To make sure we can deliver the steel Britain requires, we're undergoing the biggest transformation in our 130-year history.
"To support the journey to net zero, our owners, Jingye, have invested £330 million in capital projects during their first three years of ownership and they continue to invest unprecedented sums of money in British Steel."
It comes as talks between the firm and Government officials are understood to be taking place today about a possible rescue package.
Mp for Scunthorpe Holly Mumby-Croft's posted a statement online saying she's extremely disappointed by the news - she says she'll continue to fight for a good deal for the steelworks.
Martin Foster, Unite convenor for the British Steel site, said the company should "take a breath".
"Let's not rush this. We understand the problems with the coke ovens and why they want to close them. We were expecting it at some point but it's too soon, or we think it's come too soon anyway," he said.
"In our view, we think they should just take a step back, take a breath and have a real, hard, long think about this. Do you really need to do it this fast, in this rushed manner?"
On the impact the news would have on the town, he said: "Whenever you see a huge amount of job losses like this, it has an impact on local businesses, because if people haven't got jobs they're not spending money in the local economy.
"There are a lot of companies - small contract companies, cafes - who rely on this site, a lot of their business comes from this site, so if this comes to pass then it's going to affect them as well."
One worker leaving the site said: "It's a real shame. It's a shame guys are losing their jobs and they're outsourcing their products, it's a step back really."
Another said the plant could keep going without the coke ovens but that it would "devastate this town" if it did close.
"I don't think it will, though, not for a while," he added.
Responding to British Steel’s announcement of its plan to close its coke ovens, Community’s National Officer Alun Davies said:
“British Steel’s plan to close the coke ovens could have a catastrophic impact on jobs and steel production at Scunthorpe and the UK as a whole.
“This move would see the company depending on unreliable imported coke and puts at risk our sovereign capability to produce steel in the UK for strategic infrastructure such as our rail networks.
“We will not accept redundancies and nothing is off the table when it comes to protecting our members’ jobs.
“The Government must do whatever it takes to reach a deal with British Steel that protects the loyal workforce and the future of steelmaking in this country.”