Latest news with #ZengweiAn
BBC News
28-03-2025
- Business
- BBC News
'Scunthorpe could become a disaster town if the steelworks close'
Steelworks employees are still digesting the news of the launch of a consultation process that could result in the closure of two blast Steel said this week that the blast furnaces in Scunthorpe were "no longer financially sustainable" due to market conditions, tariffs and environmental closure of the Chinese-owned company could put up to 2,700 jobs at risk out of a workforce of 3, Finnigan, 30, who has worked at the steelworks for 10 years, said it had been "difficult trying to process the news" that he might lose his job. "We got an email yesterday about the consultation, but we had already seen a news notification about how this was coming into fruition before any of us had been informed," he said."It is disappointing to find out like that [and] doesn't make it any easier to digest."I could lose my job, livelihood and everything I've known for the last 10 years. I only got married six months ago and now have to think about the future. It's not ideal."Mr Finnigan said there had been rumours the company would receive investment from the government, which had given people hope, and to hear the news of the consultation came as a "massive shock". He added: "It's still difficult to digest but we will just keep going, doing our bit and seeing what happens."The BBC previously reported that British Steel was expecting a £1bn injection from the government to keep the business going, but it was offered £500m and rejected Steel chief executive Zengwei An said the launch of the consultation process was "a necessary decision given the hugely challenging circumstances the business faces". The consultation will look at the options of ending operations by early June, in September, or at a later date. Sandra Donnelly, from alterations shop Sew Easie, said the closure would affect every business and could lead to Scunthorpe becoming a "disaster town".She said: "People will be out of work – where are they going to get their jobs from?"There's just not the jobs here to jump into."The steelworks are our main way of employing people. We've got nothing left – we've lost everything."Patricia Fox, owner of Vanity Fayre hairdressers, is also said: "We are a small business [which cuts] people's hair who work there. If people won't be able to afford to come to us, everyone is going to suffer."Scunthorpe United FC chairwoman Michelle Harness described the news as "devastating".She said: "I'm sure the town will rally round the steelworkers."We have a large percentage of fans who are steelworkers and families of steelworkers, and there is a lot of history in the town."The town has to now find future jobs as it will affect so many other businesses – there will be a ripple effect from this closure."Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here.
Yahoo
27-03-2025
- Business
- Yahoo
Thousands of jobs at risk as British Steel threatens closure
British Steel is launching a consultation that could see the closure of its two blast furnaces at Scunthorpe, putting between 2,000 and 2,700 jobs at risk. The company said the blast furnaces were "no longer financially sustainable" due to tough market conditions, the imposition of tariffs and higher environmental costs. British Steel chief executive Zengwei An said it was "a necessary decision given the hugely challenging circumstances the business faces". The GMB union called it "devastating news for the people of Scunthorpe" and called on the government to do "everything possible" to secure the future of steelmaking at the site. British Steel has been owned by Chinese firm Jingye since 2020 and the Scunthorpe site currently employs 3,500 people. The company has been in discussions with the UK government for support for the operation but no deal has been agreed. British Steel said it would "continue to work with the UK Government to explore options for the future of the business". The company said it would begin "formal consultation" with its workforce and unions from today over three options. One is the closure of the blast furnaces, steelmaking operations and Scunthorpe Rod Mill by early June 2025. The second is the closure of the blast furnaces and steelmaking operations in September 2025. The third is a closure of the blast furnaces and steelmaking operations at a future point beyond September 2025. The general secretary of the Unite union, Sharon Graham, said: "This announcement of job losses is quite simply a disgrace. British Steel is guilty of trying to hold the government to ransom, while using its dedicated workforce as pawns. "British Steel must now withdraw its job threats and work with the government and Unite on a sustainable way forward."
Yahoo
27-03-2025
- Business
- Yahoo
Job loss fears at British Steel
Unions are calling on the Government to help secure the future of British Steel after the company announced it is consulting on closing blast furnaces, raising fears of heavy job losses. Community, the GMB and Unite said it was 'devastating' news that British Steel's Chinese owner Jingye is launching a consultation on closing the blast furnaces at Scunthorpe steelworks this June, or at a later date if an agreement with the Government can be reached. Scunthorpe steelworks employs thousands of workers directly and through supply chains throughout the UK. The company said that since it took over British Steel in 2020 it has invested more than £1.2 billion to maintain operations amid ongoing production instability and 'significant' financial losses of around £700,000 a day. It said: 'Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel. 'The company had sought support from the UK Government for a major capital investment in two new electric arc furnaces (EAFs). 'However, following many months of negotiations, no agreement has been reached. 'As a result, the difficult decision has been made to consult with employees and to consider proposals to close the blast furnaces and steelmaking operations and reduce rolling mill capacity.' The company will begin formal consultation with its workforce and unions from Thursday. British Steel chief executive Zengwei An said: 'We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. 'But we believe this is a necessary decision given the hugely challenging circumstances the business faces. 'We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.' Unions published a report last month setting out how to decarbonise steelmaking at British Steel, which would involve the continued operation of Scunthorpe's two existing blast furnaces while two new EAFs are constructed on site. The plan, which unions said would secure a move towards greener steelmaking while maintaining primary steelmaking capacity throughout the transition, would require an additional £200 million of Government support to mitigate carbon costs in the interim period, said unions. Community general secretary Roy Rickhuss said: 'This is a dark day for our steel industry and for our country. 'We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late. 'Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low-carbon steelmaking if they can secure the backing of the Government. '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. 'Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened. 'This would be catastrophic at any time, let alone in the current era of geopolitical instability and volatility. 'Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country. 'At this critical juncture, the Labour Government must do everything it can to secure the future of steelmaking at Scunthorpe – it would be unthinkable for them to let it die on their watch. 'Labour has made important commitments to steelworkers, including setting aside £2.5 billion towards supporting the steel sector with decarbonisation, and it is now time for Government to deploy these funds to protect the industry. 'If the Government chooses to let Scunthorpe die it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is our only steelmaker than can produce the construction steels the country needs for our roads, railways, schools and hospitals.' Unite general secretary Sharon Graham said: 'This announcement of job losses is quite simply a disgrace. 'British Steel is guilty of trying to hold the Government to ransom, while using its dedicated workforce as pawns. 'In discussions with Unite, the Government has clearly moved and has made an offer to invest heavily in British Steel. 'This offer comes with long-term job guarantees, anything less would be a complete misuse of taxpayers' money. 'British Steel now needs to make the necessary commitments.' Charlotte Brumpton-Childs, GMB national officer, said: 'This is devastating news for the people of Scunthorpe and the whole of UK steelmaking. 'But it's not too late. 'We urge Jingye and the Government to do everything in their power to save this vital domestic industry.'
The Guardian
27-03-2025
- Business
- The Guardian
British Steel plans to close Scunthorpe blast furnaces, putting up to 2,700 jobs at risk
British Steel plans to close its two blast furnaces and steelmaking operations in Scunthorpe, in a move that puts up to 2,700 jobs at risk and that unions described as 'devastating'. British Steel, which is owned by China's Jingye, said it would immediately start consultations with its workforce and unions on redundancies stemming from the planned closure of the blast furnaces and steelmaking alongside a reduction of steel rolling mill capacity. The proposed closures will affect between 2,000 and 2,700 workers, out of a total workforce of about 3,500, British Steel said. The company argued that despite investment of more than £1.2bn by Jingye since 2020, the Scunthorpe site had run up losses of £700,000 a day. 'The blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel,' the company said. It set out three options: closure of the blast furnaces, steelmaking operations and Scunthorpe rod mill by early June; closure of the blast furnaces and steelmaking operations in September; or closure in the future. British Steel's chief executive, Zengwei An, said: 'We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. 'But we believe this is a necessary decision given the hugely challenging circumstances the business faces.' Last month, the steel unions asked for an extra £200m from the government in support for Scunthorpe to keep the UK's two remaining blast furnaces open until electric replacements are built. On Wednesday, Sky News reported that Jingye had rejected a £500m state rescue package offered in a letter sent by the business secretary, Jonathan Reynolds, on Monday. Steel unions Community, GMB and Unite urged the government to act. Community general secretary Roy Rickhuss said: 'This is a dark day for our steel industry and for our country. We urge Jingye and the UK government to get back around the table to resume negotiations before it is too late.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 'Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low carbon steelmaking if they can secure the backing of the government. '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.' He said the UK was on the cusp of becoming the only G7 country without domestic primary steelmaking, and 'it is no exaggeration to say that our national security is gravely threatened'. Linda McCulloch, Unite's national officer, said: 'This is devastating news and there is now a duty on the government to do everything it can to prevent a catastrophic outcome. 'As the last primary steelmaking facility in the UK, Scunthorpe is a vital strategic asset which we cannot afford to lose. The government has set aside £2.5bn for the steel industry and ministers should consider deploying that funding now before it is too late.'
The Independent
27-03-2025
- Business
- The Independent
Job loss fears at British Steel
Unions are calling on the Government to help secure the future of British Steel after the company announced it is consulting on closing blast furnaces, raising fears of heavy job losses. Community, the GMB and Unite said it was 'devastating' news that British Steel's Chinese owner Jingye is launching a consultation on closing the blast furnaces at Scunthorpe steelworks this June, or at a later date if an agreement with the Government can be reached. Scunthorpe steelworks employs thousands of workers directly and through supply chains throughout the UK. The company said that since it took over British Steel in 2020 it has invested more than £1.2 billion to maintain operations amid ongoing production instability and 'significant' financial losses of around £700,000 a day. It said: 'Despite this, the blast furnaces and steelmaking operations are no longer financially sustainable due to highly challenging market conditions, the imposition of tariffs, and higher environmental costs relating to the production of high-carbon steel. 'The company had sought support from the UK Government for a major capital investment in two new electric arc furnaces (EAFs). 'However, following many months of negotiations, no agreement has been reached. 'As a result, the difficult decision has been made to consult with employees and to consider proposals to close the blast furnaces and steelmaking operations and reduce rolling mill capacity.' The company will begin formal consultation with its workforce and unions from Thursday. British Steel chief executive Zengwei An said: 'We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel. 'But we believe this is a necessary decision given the hugely challenging circumstances the business faces. 'We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.' Unions published a report last month setting out how to decarbonise steelmaking at British Steel, which would involve the continued operation of Scunthorpe's two existing blast furnaces while two new EAFs are constructed on site. The plan, which unions said would secure a move towards greener steelmaking while maintaining primary steelmaking capacity throughout the transition, would require an additional £200 million of Government support to mitigate carbon costs in the interim period, said unions. Community general secretary Roy Rickhuss said: 'This is a dark day for our steel industry and for our country. 'We urge Jingye and the UK Government to get back around the table to resume negotiations before it is too late. 'Crucially, Jingye have not ruled out retaining the blast furnaces during a transition to low-carbon steelmaking if they can secure the backing of the Government. '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. 'Given that we are now on the cusp of becoming the only G7 country without domestic primary steelmaking capacity, it is no exaggeration to say that our national security is gravely threatened. 'This would be catastrophic at any time, let alone in the current era of geopolitical instability and volatility. 'Steel is an essential component of defensive infrastructure, just as it is to wider plans to invest in growth across the country. 'At this critical juncture, the Labour Government must do everything it can to secure the future of steelmaking at Scunthorpe – it would be unthinkable for them to let it die on their watch. 'Labour has made important commitments to steelworkers, including setting aside £2.5 billion towards supporting the steel sector with decarbonisation, and it is now time for Government to deploy these funds to protect the industry. 'If the Government chooses to let Scunthorpe die it would make a mockery of their grand ambitions to deliver growth through massive infrastructure investment, because British Steel is our only steelmaker than can produce the construction steels the country needs for our roads, railways, schools and hospitals.' Unite general secretary Sharon Graham said: 'This announcement of job losses is quite simply a disgrace. 'British Steel is guilty of trying to hold the Government to ransom, while using its dedicated workforce as pawns. 'In discussions with Unite, the Government has clearly moved and has made an offer to invest heavily in British Steel. 'This offer comes with long-term job guarantees, anything less would be a complete misuse of taxpayers' money. 'British Steel now needs to make the necessary commitments.' Charlotte Brumpton-Childs, GMB national officer, said: 'This is devastating news for the people of Scunthorpe and the whole of UK steelmaking. 'But it's not too late. 'We urge Jingye and the Government to do everything in their power to save this vital domestic industry.'
