British Steel plans 260 job cuts at Scunthorpe in blow to industry
British Steel plans to axe 260 jobs and close its coking ovens at Scunthorpe, Lincs, as it bids to slash costs.
The move will pile pressure on the Government to throw the industry a lifeline as warnings mount about its future.
British Steel chief executive Xifeng Han said that “to make sure we can deliver the steel Britain requires, we’re undergoing the biggest transformation in our 130-year history”.
He said the firm, ultimately owned by Chinese company Jingye, “is committed to our long-term future but decarbonisation is a major challenge for our business and, like most companies, we’re facing significant challenges because of the economic slowdown, rising inflation and exceptionally high energy prices”.
He added: “We have taken action to reduce costs within our control; however, steelmaking in the UK remains uncompetitive when compared to other international steelmakers.
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“Our energy costs, carbon costs and labour costs are some of the highest across the world, which are factors that we cannot influence directly.”
The company also fuelled fears of further job cuts, with Mr Han warning: “We also continue to look at other potential costsaving measures across the business and will announce any further proposed changes in due course.”
British Steel's operation at ScunthorpeGMB National Officer Charlotte Brumpton-Childs said the announcement would be “devastating news for the people of Scunthorpe and all British steel workers across the UK”.
She added: “With grim predictability, the government’s investment is a sticking plaster that does nothing to help the long term structural issues affecting our steel industry.
“Now, steel workers, their families and communities will once again be asked to pay the price.
“GMB urges British steel and the UK Government to continue talks.
“Ministers need to decide if they want the UK to have a future in steel or whether they want it to wither and die like so much of our proud manufacturing heritage.”
The Unite union vowed to fight “to defend every job under threat at British Steel’s Scunthorpe plant”.
Unite general secretary Sharon Graham (Coventry Live/Tristan Potter)General secretary Sharon Graham said: “British Steel workers are faced with the toxic combination of a greedy employer that is reneging on investment promises and a shambolic UK Government that has no serious plan for the industry.
“Unite’s members in British Steel are clear that they will fight this and they will have the full support of their union.”
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Shadow Business Secretary Jonathan Reynolds said it was “yet more worrying news for our steelworkers who desperately need a Government on their side securing the bright future our steel sector could have”.
He added: “Steel is the bedrock of many communities across the UK.
“It is the foundation our manufacturing sector is built on, crucial to any net zero ambition and the beating heart of our sovereign capability.
Shadow Business Secretary Jonathan Reynolds (Martyn Wheatley / i-Images)Speaking hours before the fears became public, Business Secretary Kemi Badenoch fuelled fresh fears for the industry.
The Cabinet Minister threw doubt on the sector's survival earlier this month when, asked about its future, she said “nothing is ever a given”.
The comment provoked fury among industry leaders and unions as the sector battles cheap imports and high energy costs.
Asked about the row, former Tory leadership hopeful Mrs Badenoch told a Politico event: "This isn't the first time where I have had to deal with people criticising me for just telling the truth.
Business Secretary Kemi Badenoch (Tayfun Salci/ZUMA Press Wire/REX/Shutterstock)“I'm not too bothered by it."
However, she insisted the Government has "got the backs" of steel firms and "will do everything we can to support them".
She added: "We have done so much for the steel industry, the Government has been really committed to it."
A Government spokesman said today: “It is very disappointing British Steel has chosen to take this step for its employees while our negotiations with the sector are ongoing.
“We stand ready to support employees impacted by British Steel’s decision and will continue to work with the company to try and find a decarbonised, sustainable and competitive solution for the business and the wider sector, which plays a vital role in the UK economy.”
The Mirror has been campaigning to Save Our Steel since 2015.
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