Jamie Spencer
Thousands of Jobs at Risk Amid Tariffs and Environmental Pressures
China-owned British Steel said it could shutter its two blast furnaces in Scunthorpe as soon as June, potentially putting up to 2,700 jobs at risk. The move comes as U.S. tariffs and rising environmental costs put added strain on the already struggling operation.
Owned by China’s Jingye Group, British Steel has repeatedly warned that its Scunthorpe-based steelmaking is financially unsustainable. Despite months of negotiations with the UK government for funding to transition to greener steel production, no agreement has been reached.
“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,” British Steel stated on Thursday.
The company cited U.S. President Donald Trump’s global 25% steel import tariff, imposed on March 12, as a major blow. British Steel said its Scunthorpe operations are currently losing £700,000 ($905,240) daily.
Consultation Process and Job Losses
The company announced it is launching consultations with unions regarding the potential closure of the blast furnaces and related operations. The decision could impact between 2,000 and 2,700 of the site’s 3,500 employees.
British Steel emphasized that it remains open to working with the government to identify viable alternatives. Business Minister Jonathan Reynolds confirmed ongoing talks, saying, “I need guarantees on jobs if I’m putting public money in.”
End of an Era for British Steel
Steel has been produced in Scunthorpe since 1890. If the closure proceeds, Britain will lose its last remaining blast furnaces, marking a historic turning point for what was once the world’s leading steel producer.
The UK steel industry is pivoting toward electric arc furnaces that recycle steel with lower carbon emissions. The government is investing £500 million in Tata Steel’s Port Talbot plant to support this transition, although it has resulted in 2,800 job losses.
British Steel reportedly rejected a £500 million investment offer from the government, according to Sky News. The government has set aside £2.5 billion for the steel sector and plans to publish a comprehensive strategy in Spring 2025.
