Jingye Group closes blast furnaces at British Steel, threatening thousands of jobs

In March 2025, Britain's steel sector faced a significant crisis as Jingye Group, the Chinese owner of British Steel, announced the closure of the two remaining blast furnaces at its Scunthorpe steelworks. This decision jeopardized approximately 2,700 jobs out of a workforce of 3,500. The move came after the company rejected a £500 million government aid offer aimed at transitioning towards greener steel production. Jingye Group argued that the financial assistance was insufficient compared to what they needed to transition effectively. The situation escalated following ongoing negotiations between British Steel and the UK government, which began over two years ago. Despite the government's commitment to invest up to £2.5 billion in the steel industry, it provided only a fraction of the expected support. British Steel had anticipated a £1 billion injection of government funding to maintain operations and facilitate its transition to electric arc furnace steelmaking, a cleaner alternative that would align with environmental goals. Amid rising concerns over tariffs imposed by the United States on steel imports, and the impact of high environmental penalties, Jingye's decision created a critical urgency for the UK's steelmaking sector. The Transforming Steel consultation, which aimed to lay out the future of steel production in the country, highlighted the pressing needs of the industry, particularly in light of these closures which would hurt local job markets and economies. Union representatives expressed deep concern over the closures, calling the situation a 'dark day' for the steel industry and urging both the government and Jingye to re-enter negotiations for a viable solution. The potential job losses also raised alarms regarding the communities historically reliant on steel production and raised broader questions about the future of the UK's manufacturing sector amid global competition and environmental policies.