2,700 jobs at risk at Scunthorpe steel plant

Described as ‘a disgrace’ by Unite, British Steel is also looking at reducing its steel rolling mill capacity at the loss-making plant.

Majority shareholder Jingye said it has invested over £1.2bn to maintain operations amid ongoing production instability and losses of around £700k a day.

Investments include over £300m in strategic capital projects including a mast service centre in Skinningrove, a rail stocking facility and a new billet caster.

Despite this, the company said challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of steel have made the Scunthorpe plant financially unviable.

In a statement, British Steel CEO Zengwei An, said: “We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel.

“But we believe this is a necessary decision given the hugely challenging circumstances the business faces.

“We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.”

The company added that it had sought government support for two new Electric Arc Furnaces, which it said has not been forthcoming. 

Challenging this assertion, Unite general secretary Sharon Graham said: “British Steel is guilty of trying to hold the government to ransom, while using its dedicated workforce as pawns.

“In discussions with Unite, the government has clearly moved and has made an offer to invest heavily in British Steel. This offer comes with long-term job guarantees, anything less would be a complete misuse of taxpayers’ money. British steel now needs to make the necessary commitments.”

British Steel began formal consultation with its workforce and unions on March 27, 2025.

The consultation proposes three options, namely the closure of the blast furnaces, steelmaking operations and Scunthorpe Rod Mill by early June 2025; closure of the blast furnaces and steelmaking operations in September 2025; or closure of the blast furnaces and steelmaking operations at a point beyond September 2025.