British Steel plans to close down its blast furnace in Scunthorpe, putting up to 2,000 jobs at risk.
The business, owned by China's Jingye Group, wants to replace it with two electric arc furnaces (EAFs) – one at Scunthorpe and one at Teesside.
The construction is expected to take between two and three years. British Steel said it aimed to transform the firm into a “green and sustainable company” and had to look at different scenarios to help it do this.
Unions estimate the shift could ultimately lead to the loss of 1,500 to 2,000 jobs, predominantly at Scunthorpe. Sources at the Department for Business say the proposals are part of a plan, involving a package of taxpayer support of up to £500m for British Steel which mirrors a package agreed for rival Tata.
Government sources said that these plants are not economic – they are losing £1m a day according to the government – are not “green” and are therefore unsustainable on financial and environmental grounds.
— CutC by bbc.com
