[ad_1]
The government is being urged to nationalise British Steel should no deal is reached as Chinese owner Jingye have announced they are launching a consultation process to close the blast furnaces at the Scunthorpe plant which could put thousands of jobs at risk.
Jinye has allegedly rejected the government’s £500 million to help move to a green production with a new electric arc furnace.
UK Steel who are an industry body has warned ending production at the steel plant in Scunthorpe will lead to losses of steelmaking for critical transport, infrastructure, construction and rail and light and heavy sections, meaning the UK would be reliant on overseas supplies.
UK Steel director general Gareth Stace said: “The proposal to close iron and steelmaking at Scunthorpe marks a heartbreaking and pivotal moment for our sector. It is a shocking blow to the 3,400 workers, our sector and to the whole community in Scunthorpe. This gut punch to UK steelmaking will have a profound impact, felt throughout the British economy.
“All options should be on the table, and we need a secure future for our steel industry. The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armour of national security.
“This devastating decision will cause untold disruption and damage to our supply chains, threatening jobs, businesses and the nation’s economic strengths. The steel industry is officially in a crisis.”
The Community union’s assistant general secretary Alasdair McDiarmid said: “British Steel is a business of huge strategic importance, not just to the local economy and the wider steel sector, but to the country as a whole.
“There is now a serious risk that the UK will become the only G7 country unable to produce its own virgin steel. This would be a totally unacceptable situation at any time, let alone in the current era of global insecurity and volatility.
“If a deal can’t be reached with Jingye, then the government must move to nationalise the business. This government cannot afford to renege on the commitments it has made to steelworkers, and it is unthinkable that they would allow Britain’s primary steelmaking capacity to die on their watch.”
Business and Trade Secretary Jonathan Reynolds said: “I know this will be a deeply worrying time for staff and, while this is British Steel’s decision, we will continue working tirelessly to reach an agreement with the company’s owners to secure its future and protect taxpayers’ money.
“We’ve been clear there’s a bright future for steelmaking in the UK. We’ve committed up to £2.5 billion to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.”
[ad_2]
Source link
