Chinese-owned British Steel Limited announced Thursday it may shut down two blast furnaces, steelmaking operations, and reduce rolling mill capacity in Scunthorpe, UK, citing financial unsustainability. The company will consult on three closure options, ranging from June 2025 to beyond September 2025.
In the release, it said that owner Jingye Group has invested over £1.2 billion to sustain operations since 2020, including £300 million in upgrades, yet daily losses near £700.000 persist. Market challenges, tariffs, and high environmental costs have made blast furnace operations unsustainable. CEO Zengwei An called the decision "extremely difficult" but "necessary," pledging continued engagement with employees and unions.
A day earlier, the steel producer rejected a £500 million state rescue package after considering it is far less than the amount sought in months of negotiation. According to Sky News, the closure decision could lead to 2,000–2,500 job losses from its 3,500-strong workforce.
