Financial Struggles Lead to Possible Shutdown

Chinese-owned British Steel Limited has announced a potential shutdown of two blast furnaces, steelmaking operations, and a reduction in rolling mill capacity in Scunthorpe, UK. The company cites financial unsustainability as the primary reason for this difficult decision. Three closure options are under consideration, with timelines ranging from June 2025 to beyond September 2025.

Investments and Losses

Since 2020, owner Jingye Group has invested over £1.2 billion to keep the operations afloat, including £300 million in upgrades. Despite these efforts, daily losses nearing £700,000 continue to plague the company. Market challenges, tariffs, and high environmental costs have rendered blast furnace operations unsustainable.

A Difficult but Necessary Decision

CEO Zengwei An described the decision as "extremely difficult" but "necessary." The company has pledged to maintain open communication with employees and unions throughout the process.

Rejection of State Rescue Package

Just a day before the announcement, British Steel rejected a £500 million state rescue package, deeming it insufficient compared to the amount sought during months of negotiations. Reports suggest that the closure could result in the loss of 2,000 to 2,500 jobs from its workforce of 3,500.