British Steel to Close Scunthorpe Coking Ovens with 300 Jobs
Lost
On Wednesday, British Steel is expected to announce the
closure of its coking ovens in Scunthorpe, leading to the loss of 300 jobs. The
timescale for the closure and the number of compulsory redundancies have yet to
be determined.
The closure of the coking ovens is significant because they
are used to transform coal into coke, which is necessary to burn at the high
temperatures required for the two blast furnaces that remain operational.
Following the closure, British Steel will be importing coke.
Union officials have expressed concern that the closure of
the coking ovens may be an indication of the UK steel industry's poor health.
They said that the industry is "on a knife edge." Government sources
describe the closure as "disappointing," especially since
negotiations between British Steel's Chinese owners Jingye, Tata, and the
Treasury regarding a £300m support package for each company are still ongoing.
In response to the announcement, a British Steel
spokesperson stated that the closure of the coking ovens was due to the
economic slowdown, rising inflation, and the exceptionally high energy prices,
all of which have had a significant impact on the company's finances. Although
Jingye has invested £330m in three years and is committed long-term, the
spokesperson said that British Steel is facing significant challenges.
Union sources claim that government offers to date have been
rejected due to too many strings attached, including job guarantees for ten
years. Additionally, the offers are too small to help with the estimated £2bn
cost of transitioning from blast furnaces to more energy-efficient electric arc
furnaces. Electric arc furnaces, which are fed with recycled steel, do not burn
hot enough to make virgin steel, and it is currently cheaper to send scrap
steel to Turkey and Indonesia for recycling than to do so locally.
Recently, Business Secretary Kemi Badenoch said that it is
"not a given" that the UK needs a steel industry, while acknowledging
the importance of the industry in the communities in which they operate.
British Steel has announced the potential closure of its
Scunthorpe plant, leading to fears of job losses. The talks on how many
voluntary and compulsory redundancies there will be will begin next week, and
there are reports that the closure could happen by the end of the year.
The Scunthorpe plant, which is one of the largest steel
producers in the UK, has been facing financial difficulties for some time. In
February, the company was considering cutting 800 jobs at the plant.
A Jingye representative described the government support
discussions at the time as "unsatisfactory". The proposed support
package did not address energy, labour, and carbon costs, and low domestic
demand, the representative said.
There are fears that the closure of the plant will result in
further job losses across the site. The closure of the Scunthorpe plant is a
significant blow to the UK steel industry, which has been struggling to compete
with cheaper imports from abroad.
British Steel's Scunthorpe plant is one of the last
remaining steelworks in the UK, and its potential closure is seen as a worrying
indicator about the health of the industry. The plant is essential to the
supply chain for industries such as automotive, construction, and engineering.
A spokesperson for British Steel said that the company was
facing significant challenges due to the economic slowdown, rising inflation,
and exceptionally high energy prices. They also confirmed that the proposed
closure of the Scunthorpe plant was under consideration.
The spokesperson said that talks on how many voluntary and
compulsory redundancies there will be will begin next week, and that there are
fears for further job losses across the site. The spokesperson added that the
company was committed to supporting its employees and the local community
during this challenging time.
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