2,500 Steelworkers Laid Off as British Steel Closes Scunthorpe Furnaces

In a significant blow to the local economy, British Steel has announced plans to close its blast furnaces in Scunthorpe ahead of schedule, putting at least 2,500 jobs at risk just before Christmas. The company had previously indicated intentions to transition to an electric arc furnace (EAF) as part of its decarbonisation strategy, but sources reveal that the plant will cease importing coke and coal by October, leading to a permanent shutdown of the blast furnaces. Unions have expressed deep concern over the impact of this decision on the community and workforce. The GMB union described the early closure as “devastating,” while Shadow Business Minister Kevin Hollinrake criticized the government’s approach, suggesting it reflects a misguided attempt to balance environmental goals with economic realities. He accused the government of prioritizing foreign steel imports over domestic job security. Negotiations are reportedly ongoing between British Steel's Chinese owners and the government, with discussions about importing up to 3 million tonnes of steel from China. Critics argue that this could lead to significant job losses while the company receives substantial financial support, potentially exceeding £600 million, to invest in future projects, including the delayed EAFs. The Department for Business and Trade has emphasized its commitment to a green steel transition that protects jobs and the industry. A spokesperson stated that decarbonisation efforts would not equate to deindustrialisation, highlighting a £2.5 billion investment aimed at revitalizing the UK steel sector and supporting affected communities.