British Steel confirms plans that could lead to 2,000 job losses

British Steel confirmed plans that unions warn could lead to the loss of 2,000 jobs in Scunthorpe on Monday afternoon.

The company, owned by Jingye Group, said it would close the blast furnaces at its Scunthorpe facility and replace them with two more cost-effective and environmentally friendly electric arc furnaces (EAFs), with one in Scunthorpe and the other in Teesside.

Jingye said its objective was to enhance the competitiveness of UK-produced steel and ensure a sustainable future for the company.

While the exact number of job losses was not confirmed, Sky News said the company had consistently cited high energy and labour costs as barriers to profitability.

The proposed £1.25bn investment was contingent on a government grant, estimated at £300m.

British Steel asserted that the plans could reduce carbon dioxide emissions by 75% since EAFs can operate on zero-carbon electricity.

The new furnaces were expected to be up and running by late 2025.

India-owned Tata Steel was also planning to close its two blast furnaces at the Port Talbot works in south Wales, potentially jeopardising up to 3,000 jobs as part of its own plans.

Reporting by Josh White for Sharecast.com.