Job losses expected as British Steel plans to scrap Scunthorpe furnaces

(Sharecast News) - British Steel's blast furnaces in Scunthorpe are to close down, putting up to 2,000 jobs at risk, as the Chinese-owned manufacturer looks to transform into a more sustainable company. The plans, which involve replacing the furnaces with electric arc furnaces, follow a similar move by Tata Steel surrounding the expected closure of blast furnaces in Port Talbot - resulting in up to 3,000 job losses - as steelmakers face increasing pressure to decarbonise.

According to the BBC, unions expect British Steel's plans will lead to the loss of 1,500 to 2,000 jobs.

"While decarbonisation is a major challenge for our business, we're committed to transforming British Steel into a green and sustainable company providing long-term, skilled and well-paid careers for thousands of employees and many more in our supply chains," a spokesperson from British Steel said.

"As part of our journey to net zero, it is prudent to evaluate different operational scenarios to help us achieve our ambitious goals and we are continuing to assess our options."

Jingye Group, which employs a total of 31,000 people and is headquartered in Shijiazhuang, China, acquired British Steel back in March 2020.