– Announcement –
– Announcement –
Shock as British Steel announces closure of Scunthorpe blast furnace
People in Scunthorpe are in shock after it emerged that up to 2,000 jobs could be lost at British Steel. It will not only affect those living in Scunthorpe, it will also affect the wider area including Grimsby, Lincoln and Skegness.
– Announcement –
British Steel, a Chinese-owned company, is set to close the blast furnaces at its Scunthorpe plant in a move that could lead to the loss of up to 2,000 jobs.
The company plans to replace the blast furnaces with two electric arc versions, which can run on carbon-free electricity.
However, these electric furnaces require fewer workers to maintain their operations. Unions are concerned about possible job losses and the UK's ability to produce its own steel.
British Steel intends to build a new electric arc furnace in Scunthorpe and another at its Teesside plant. The use of electric arc furnaces allows the recycling of scrap steel into new steel, making the process more sustainable.
These ovens run on carbon-free electricity, aligning with the company's commitment to reducing carbon emissions. However, the transition to electric arc furnaces comes at a cost, as it requires a significant reduction in manpower.
Unions are concerned about potential job losses at both the Scunthorpe and Teesside sites. They argue that the closure of the blast furnaces could lead to the loss of between 1,500 and 2,000 jobs, mainly affecting Scunthorpe.
The move also raises concerns about the UK's ability to produce its own steel, leaving the country dependent on international markets. Community union general secretary Roy Rickhuss voices his concern, saying blast furnaces play a vital role in a responsible transition to green steel.
British Steel chief executive Xijun Cao said: “We have engaged extensively with the public and private sector to understand the feasibility of producing net zero steel with our current blast furnace operations. However, a thorough analysis shows that this it is not viable.
“Detailed studies show that electrification could rapidly accelerate our journey to net zero and drive British Steel towards a sustainable future.” However, a detailed analysis concluded that this approach is not viable. The company believes that electrification can accelerate its journey towards net zero emissions and ensure a sustainable future.
British Steel says it will support employees affected by decarbonisation plans and has started preliminary talks with unions.
The closure of the blast furnaces is part of British Steel's wider plan to decarbonise its operations. Reports suggest the company is in discussions with the UK government over a support package worth approximately £500m.
This package aims to help British Steel fund the necessary changes and transition to greener technology. The government has expressed its commitment to the steel sector, offering more than £300 million in investment to help reduce emissions and safeguard jobs.
However, the final decisions regarding the future of the company rest with British Steel.
Earlier this year, Tata Steel, a major competitor of British Steel, announced similar plans to convert its coal-fired blast furnaces at the Port Talbot site to electric arc versions.
These changes could affect up to 3,000 jobs, highlighting the challenges the steel industry faces in transitioning to more sustainable practices.
Decarbonising steelmaking is crucial for the UK to meet its climate change targets, with the Port Talbot and Scunthorpe sites accounting for around 15% of the country's industrial emissions.
To meet its climate change targets, the UK Climate Change Committee recommends setting targets for near-zero emissions in ore-based steelmaking by 2035.
The closure of blast furnaces and the adoption of electric arc furnaces contribute to this goal, as they significantly reduce carbon emissions. The steel industry's efforts to decarbonise are essential to the UK's overall sustainability and its commitment to tackling climate change.