Thousands of jobs are in danger after British Steel revealed plans that threaten to close its two blast furnaces.
Up to 2,700 roles are at risk as a consultation was launched by the UK’s second largest steel producer, days after the firm’s Chinese owners rejected a government subsidy valued at £500million.
Trade unions have responded by calling this a ‘dark day’ for the nation’s steel industry and called for urgent government intervention, while there were concerns raised about the potential impact on Britain’s defence capabilities.
British Steel chief executive Zengwei An said today: ‘We understand this is an extremely difficult day for our staff, their families, and everyone associated with British Steel.
‘But we believe this is a necessary decision given the hugely challenging circumstances the business faces.
‘We remain committed to engaging with our workforce and unions, as well as our suppliers and customers during this time.’
The announcement comes after it was revealed how the company had rejected a written offer of £500million in Government subsidy from the Business Secretary Jonathan Reynolds.
Industry Minister Sarah Jones told a committee of MPs yesterday afternoon that the offer was proposed earlier this week but turned down by Jingye, which is reported to have requested at least £1billion from ministers.
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