British Steel plans closure of plant after failing to agree package with UK government
LONDON (AP) — British Steel said Thursday that it is planning to close its two blast furnaces and steelmaking operations in the northern England town of Scunthorpe, after its Chinese owner Jingye failed to agree a rescue package with the U.K. government.
Unions called on the government to help secure the future of the company, which Jingye said is suffering daily losses of around 700,000 pounds ($900,000) despite the Chinese firm investing more than 1.2 billion to maintain operations since its takeover of British Steel in 2020.
The company, Britain's second-biggest steelmaker, blamed 'highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel.'
British Steel said it is consulting with unions over the the decision to close the blast furnaces and steelmaking operations and reduce rolling mill capacity, potentially as early as June. Between 2,000 to 2,700 jobs are potentially at risk.
The company had sought support from the government for a major capital investment in two new electric arc furnaces, which would emit far less carbon into the atmosphere, but no agreement was reached after months of negotiations.
Unions published a report last month setting out how to decarbonize steelmaking at British Steel, which would involve the continued operation of Scunthorpe's two existing blast furnaces while two new electric ones constructed on site. The plan would require an additional 200 million pounds of government support to mitigate carbon costs in the interim period.
'This is a dark day for our steel industry and for our country," said Roy Rickhuss, the general secretary of the Community union. 'The closures at Scunthorpe would represent a hammer blow to communities which were built on steel, and where the industry still supports thousands of jobs directly and thousands more through extensive supply chains."
Rickhuss urged Jingye and the government to get back to the negotiating table and said the Chinese company 'have not ruled out" retaining the blast furnaces during a transition if they can win government backing.
Business and Trade Secretary Jonathan Reynolds said the government will 'continue working tirelessly' to reach an agreement with Jingye.
'We've been clear there's a bright future for steelmaking in the U.K," he said.
At its height in the postwar period, British steelmaking was a global leader, employing more than 300,000 people, before cheaper offerings from China and other countries hit production. It now employs about 40,000 directly, with the industry accounting for just 0.1% of the British economy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
20 minutes ago
- Axios
MAGA's blue-collar base waits patiently for populist payoff
President Trump 's second term has been a payday for the powerful, exposing a disconnect in his promise to deliver for "the forgotten man" of America's working class. Why it matters: The populist paradox at the heart of MAGA — a movement fueled by economic grievance and championed by a New York billionaire — has never been more pronounced. Trump's blue-collar base remains fiercely loyal, energized by his hardline stances on immigration, trade and culture — and patient that his economic "Golden Age" will materialize. But so far, the clearest financial rewards of Trump's tenure are flowing upward — to wealthy donors, family members, insiders and the president himself. The big picture: Trump's inner circle has shattered norms around profiting from the presidency, dulling public outrage to the point where even the most brazen access schemes draw only fleeting scrutiny. Take crypto: The top holders of Trump's meme coin were granted an exclusive dinner last month at the president's Virginia golf club, where some paid millions for access. The White House refused to release the guest list, but wealthy foreigners — including a Chinese billionaire who faced SEC charges under the Biden administration — were among those revealed to be in attendance. Trump's sons, meanwhile, are spearheading a family crypto venture that has raked in hundreds of millions of dollars. Trump Media, the parent company of Truth Social, is raising $2.5 billion to buy Bitcoin. All of this — plus a flurry of lucrative real estate deals overseas — is playing out as Trump presides over U.S. foreign policy and the fate of crypto regulation. Zoom in: Now take Trump's relationship with his donors. His Cabinet is the wealthiest in American history, stocked with mega-donors whose combined net worth reaches well into the billions — even discounting estranged former adviser Elon Musk. Trump has granted pardons or clemency to a stream of white-collar criminals and wealthy tax cheats, many of whom hired lobbyists, donated to the president or raised money on his behalf. The Wall Street Journal found that the biggest corporate and individual donors to Trump's inauguration later received relief from investigations, U.S. market access and plum postings in the administration. The other side: Trump officials wholly reject the premise that the administration's policies don't benefit the working-class Americans who voted for the president en masse. The White House points to cooling inflation, plummeting border crossings, and the tariff-driven re-shoring of manufacturing as evidence of Trump delivering on his core promises. They frame his crypto push, AI acceleration and deregulatory agenda as driving forces behind a pro-growth tide that will lift all boats — including for middle- and working-class Americans. Reality check: Inflation may remain benign for now, but there are growing signs businesses are experiencing higher prices and passing some or all of those costs directly through to consumers, Axios managing editor for business Ben Berkowitz notes. While companies have made encouraging public statements about re-shoring, in almost all of those cases it's too soon for any shovels to be in the ground. What to watch: Trump's "One, Big, Beautiful Bill" is packed with populist red meat, including the extension of his first-term tax cuts, the elimination of taxes on tips and overtime, and $1,000 " Trump Accounts" for newborns. "All his hopes and dreams on that front are pinned to that reconciliation bill," one MAGA operative told Axios, characterizing it as "the bulk" of Trump's legislative agenda for the middle class. "The president expects the Senate to quickly pass the One, Big, Beautiful Bill, codifying huge tax cuts that will mean permanent savings for hardworking Americans," White House spokesperson Taylor Rogers said. Between the lines: Several independent analyses project that the wealthiest Americans would benefit most from the bill. A Penn Wharton study that found the top 10% of earners would reap 70% of the legislation's total value. The Congressional Budget Office projects that Medicaid work requirements and other health care cuts would leave about 11 million people uninsured by 2034. Millions could also be forced off of food stamps. "Medicaid, you gotta be careful," former Trump adviser Steve Bannon said on his "War Room" podcast in February. "Because a lot of MAGAs are on Medicaid, I'm telling you. If you don't think so, you are dead wrong." Factory investments in red districts are expected to suffer most from the bill's rollback of clean energy credits included in President Biden's Inflation Reduction Act. The bottom line: Inside the MAGA movement, there's little concern about who's getting rich as long as Trump keeps fighting the culture wars, deporting immigrants and tearing down liberal institutions.
Yahoo
28 minutes ago
- Yahoo
Gerry Adams's lawyer to pursue chatbots for libel
The high-profile media lawyer who represented Gerry Adams in his libel trial against the BBC is now preparing to sue the world's most powerful AI chatbots for defamation. As one of the most prominent libel lawyers in the UK, Paul Tweed said that artificial intelligence was the 'new battleground' in trying to prevent misinformation about his clients from being spread online. Mr Tweed is turning his attention to tech after he recently helped the former Sinn Fein leader secure a €100,000 (£84,000) payout over a BBC documentary that falsely claimed he sanctioned the murder of a British spy. The Belfast-based solicitor said he was already building a test case against Meta that could trigger a flurry of similar lawsuits, as he claims to have exposed falsehoods shared by chatbots on Facebook and Instagram. It is not the first time tech giants have been sued for defamation over questionable responses spewed out by their chatbots. Robby Starbuck, the US activist known for targeting diversity schemes at major companies, has sued Meta for defamation alleging that its AI chatbot spread a number of false claims about him, including that he took part in the Capitol riots. A Norwegian man also filed a complaint against OpenAI after its ChatGPT software incorrectly stated that he had killed two of his sons and been jailed for 21 years. Mr Tweed, who has represented celebrities such as Johnny Depp, Harrison Ford and Jennifer Lopez, said: 'My pet subject is generative AI and the consequences of them repeating or regurgitating disinformation and misinformation.' He believes statements put out by AI chatbots fall outside the protections afforded to social media companies, which have traditionally seen them avoid liability for libel. If successful, Mr Tweed will expose social media companies that have previously argued they should not be responsible for claims made on their platforms because they are technology companies rather than traditional publishers. Mr Tweed said: 'I've been liaising with a number of well-known legal professors on both sides of the Atlantic and they agree that there's a very strong argument that generative AI will fall outside the legislative protections.' The lawyer said that chatbots are actually creating new content, meaning they should be considered publishers. He said that the decision by many tech giants to move their headquarters to Ireland for lower tax rates had also opened them up to being sued in Dublin's high courts, where libel cases are typically decided by a jury. This setup is often seen as more favourable to claimants, which Mr Tweed himself says has fuelled a wave of 'libel tourism' in Ireland. He also said Dublin's high courts are attractive as a lower price option compared to London, where he said the costs of filing libel claims are 'eye-watering'. He said: 'I think it's absurd now, the level of costs that are being claimed. The libel courts in London are becoming very, very expensive and highly risky now. The moment you issue your claim form, the costs go into the stratosphere. 'It's not in anyone's interest for people to be deprived of access to justice. It will get to the point where nobody sues for libel unless you're a billionaire.' Meta was contacted for comment. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
28 minutes ago
- Yahoo
Palantir's H-1B Hiring Sparks Fears Over Sensitive U.S. Data Access
Palantir Technologies, the surveillance giant under growing scrutiny for its ties to the Trump administration, employs scores of foreign workers even as it helps compile vast amounts of sensitive data on Americans. Palantir sponsored 78 foreign workers in 2024 — the most recent year for which data is available — and has sponsored 263 workers under the program since 2020, The H-1B Salary Database indicates that about half of these roles are for AI and software engineering positions, placing foreign nationals in critical technical roles at a company now reportedly embedded in the core operations of U.S. federal agencies. Nationals from India and China receive the most H-1B visas of any country's workers. USCIS data reveals that during fiscal year 2023, 72% of H-1B visas were issued to Indians, while 12% went to the Chinese. The database disclosures stand in stark contrast to recent revelations from The New York Times, which reported on May 30 that Palantir has become the centerpiece of an ambitious effort by the Trump administration to centralize federal data on American citizens. The reporting detailed how Palantir's Foundry platform is being adopted across agencies, including the Department of Homeland Security (DHS), Health and Human Services, and the Internal Revenue Service (IRS), enabling the administration to merge disparate databases that contain financial, medical, and immigration records. The Times reported that Palantir, co-founded by Peter Thiel and led by CEO Alex Karp, received more than $113 million in federal contracts under the Trump administration, not including a new $795 million Department of Defense award. Former employees and privacy advocates voiced concern that the company — already entwined with Immigration and Customs Enforcement (ICE) and the Pentagon — is facilitating the construction of what critics describe as a potential 'national citizen database.' The concerns are compounded by the company's international footprint and foreign staffing. Palantir lists between 1,000 and 5,000 employees on LinkedIn, with most external estimates placing its global headcount at just under 4,000. The company maintains a presence on every inhabited continent — including operations and staff in Asia and Europe, according to LeadIQ. A recent Business Insider Africa report also confirmed that Palantir provides artificial intelligence tools to foreign militaries, including those of Israel and Ukraine. The firm held its first 2025 board meeting in Tel Aviv and has partnered with the Israeli Ministry of Defense to support ongoing war efforts. The optics of such international entanglements have not gone unnoticed among former staff. In a letter obtained by NPR and published May 5, thirteen former Palantir employees condemned the company's expanding work with the Trump administration, particularly its $30 million deal with ICE to develop a system capable of tracking migrant movement in near real-time. 'Early Palantirians understood the ethical weight of building these technologies… These principles have now been violated and are rapidly being dismantled at Palantir Technologies,' the ex-employees wrote. The former employees also warned that the software they helped build could now be used for surveillance targeting immigrant families, journalists, and political dissenters. The New York Times further detailed internal dissent among employees disturbed by the firm's proximity to Trump's political agenda. Some engineers reportedly raised red flags about inadequate security practices among Department of Government Efficiency (DOGE) staff — a Trump-aligned task force spearheading the data initiative, many of whom previously worked at Palantir or companies funded by Thiel. Despite public concerns, Palantir has emphasized that it acts only as a data processor. In a 2020 blog post, the company The White House declined to comment for the Times story but pointed to President Trump's executive order mandating that federal data silos be eliminated in favor of cross-agency access. Supporters argue the plan increases government efficiency and saves taxpayer money. However, critics — including civil liberties lawyers — have warned that concentrating this data creates new risks of abuse. Mario Trujillo of the Electronic Frontier Foundation told the Times, 'If people can't trust that the data they are giving the government will be protected, it will lead to a crisis of trust.' The Dallas Express contacted Palantir to ask whether H-1B workers are processing sensitive American data; a company spokesman did not return a comment by the time of publication.
