British Steel has announced plans to close its blast furnaces in Scunthorpe and replace them with electric arc furnaces, a move that could put up to 2,000 jobs at risk. The company, owned by China’s Jingye Group, aims to make British Steel a “clean, green and sustainable business”. However, the plans are dependent on support from the UK government. The blast furnaces, which are losing £1m per day and considered environmentally unsustainable, would be replaced with two electric arc furnaces by late 2025. Unions have expressed concern over the job losses and the impact on the UK’s ability to produce “virgin steel” from raw materials.
The move to electric arc furnaces is part of a wider plan by the UK government to establish a greener and more sustainable steel industry. The proposal includes a support package of over £300m in investment. British Steel is in talks with the government regarding further backing for its strategy but emphasized the need for the UK to adopt suitable policies and frameworks to support decarbonisation. Other countries have adopted similar policies, and the delay in the UK could negatively affect both British Steel’s competitiveness and the country’s ability to meet carbon targets. However, unions have criticized the shift to electric arc furnaces, calling it “dangerous and foolhardy” and arguing that it will leave the UK reliant on international markets for steel production.
The closure of the blast furnaces in Scunthorpe and Port Talbot would mean that the UK will no longer have the capacity to produce “virgin steel” from raw materials. Electric arc furnaces primarily melt down and repurpose scrap steel, which is not suitable for all industrial uses. Unions argue that the proposed switch to only electric arc furnaces would be detrimental to the UK’s steel industry and leave it exposed to international markets. Workers have threatened industrial action over the plans. Critics of the government’s approach argue that other countries have successfully transitioned to zero-carbon steelmaking while protecting jobs, and that the UK can do the same. The closure of the blast furnaces would have a significant impact on Scunthorpe, where the steelworks have been a prominent feature for decades, providing employment for generations of local workers. British Steel has emphasized its commitment to providing long-term careers and well-paid jobs for its employees.
