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The last ovens working in Britain could see their fate sealed within days, after their Chinese owners made the decision to ward off the important offering of ingredients that keep them going.
According to the trade union representatives, Jingye, the owner of British Steel in Scunthorpe, canceled future orders for the iron ore, coal and other raw materials needed to keep the ovens going.
The result is that they may have to close next month – even sooner than the earliest date proposed for its closure.
Read more: Thousands of jobs that are at risk as British Steel Consult unions about the closure
The fate of the ovens – the last two domestic sources of virgin steel, made of iron ore rather than recycled – is likely to be determined within a few days, with the Department of Affairs and Trade now actively thinking about nationalization.
The result is that even though Britain is with a trade war on the Atlantic, it is now working against the clock to ensure the future of steel manufacturing at Scunthorpe.
The talks between the government and Jingye broke last week after the Chinese company, which British Steel bought from the reception in 2020, rejected an offer of £ 500m of public money To replace the existing ovens with electrical arc furnace.
The amount is the same as it offered to Tata Steel, which has closed the other remaining British ovens in Port Talbot and plans to build electric ovens – which has much lower carbon emissions.
These steel workers can be without work soon
However, the owners argue that the amount is too low to justify extra investment at Scuntrorpe, and said last week that they are now consulting on the date on which the ovens and the attached steel works were closed.
Since British Steel is the most important supplier of steel rails Network track – as well as other construction language available from only a few areas in the world – the closure would depend more on imports for critical infrastructure sites.
However, as the site belongs to its Chinese owners, a decision to nationalize the site will involve radical steps that the government’s officials are careful to take.
They also fear that taxpayers are exposed to a potentially loss -making business in the long run.
The dilemma was raised by the sharp turn in geopolitical sentiment to Donald Trump’s return to the White House.
The beginning of the trade war and the endangered cut in US support for Europe has caused fresh calls to act urgently to secure their own supplies of critical materials, especially those used for defense and infrastructure.
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Gareth Stace, head of UK Steel, the industry’s lobby group, said: “It seems talks between the government and the British steel have broken down.
“My advice to the government is: Please, Jonathan Reynolds, business secretary, comes back to the negotiating table, strikes an agreement, and if no agreement can be found within the next few days, I fear for the future of the sector, but also here for Scunthorpe Steelworks.”
British steel declined to comment.
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